We’re keeping an eye out for chatter about tomorrow’s FOMC decision but not too many interesting ideas are floating around. There is a strong consensus that Bernanke & Co. will stay on the sidelines.
There is certainly some dollar buying going on due to the chance the Fed will temper QE3 expectations but in the past, the Fed has chosen to be dovish or vague when the outlook has improve. Better comments on growth are likely to have the same dollar-positive effect, especially against JPY.
