The FOMC will have a statement in just over an hour. The event risk is a more insistent tone from the Fed on the possibility of purchases of long-term Treasuries. 10 year notes stand about 50 bp higher today then where they ended 2008 which has prompted a rebound in mortgage rates. Odds are pretty decent they will attempt to push long rates lower to restart the housing market.
The dollar would probably react negatively in the short-term to such a move (as it did in December when the initial moves to quantitative ease were announced) but the sell-off would likely be much less intense than it was back in December.
