Black clouds threaten Europe's recovery, taking the pressure off the USD

By Kathleen Brooks, Research Director UK EMEA, FOREX.com

The market is still digesting the latest Fed decision this morning, as European equities follow their Asian and US peers lower. Although October's Fed statement did not differ by that much compared with the statement in September, the Fed delivered a powerful punch: 1, it did not rule out the prospect of tapering in December, 2, the Fed won't be swayed by what's going on in Washington, and seemed fairly happy with the underlying pace of growth even in the midst of fiscal retrenchment.