Forex Flash: JPY standout loser following FOMC yesterday – UBS (Barcelona) - The dollar continued to trade on a soft note overnight in Europe across the board. Risk assets were generally bid, all major equity markets pushed higher, following Asian equities while commodities and precious metals continued their rally.

According to Research Analyst Chris Walker at UBS, “The market forces are clearly quite strong at this juncture and we would caution against immediately fading the moves, though we do see scope for some stabilization , given the dollar has already sold-off quite sharply since the August payrolls report.”

JPY weakness was the standout theme in Europe, with EUR/JPY rallying one big-figure, dragging USD/JPY up with it. “The pair remains supported both by the threat of intervention and policy response and the Fed's decision to avoid buying US Treasury securities.” Walker adds.