Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Japan’s Service Sector Sustains Growth Momentum in November 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
U.S. Soybean Shipments to China Gain Momentum as Trade Tensions Ease 
U.S. May Withhold $30.4 Million From Minnesota Over Improper Commercial Driver Licenses 
Dollar Slips as Weak U.S. Manufacturing Data Increases Pressure for Fed Rate Cuts 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
South Korea Inflation Edges Up in November as Food and Service Costs Climb 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
The FOMC statement seems to have been the trigger rather than the cause of this new leg of USD weakness. The dollar is struggling and the only reason EUR/USD had for not been trading in the mid-1.17ies earlier was that FOMC statements always contain a potential event risk. As soon as this obstacle had been removed the path for further USD weakness had been cleared.
However, the reasons for the current USD weakness really do rest with the Fed. It is really impressive how a central bank has managed to destroy itself in less than 10 years. The expectation of half a rate step (I.e. 50 percent probability of a step) until late 2017 and a further rate step in 2018 existed for some time; only that the dollar traded much stronger then. The difference is: the Fed is no longer the only central bank that is normalizing its interest rates (at least given market expectations about ECB, BoE etc. normalization).
"In this environment the Fed’s painfully slow hiking speed seems less attractive. And that is why the Fed’s inability to convince the market of further rate hikes now hurting the Greenback more than in the past," Commerzbank commented in its latest research report.
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