Central bank action remained in the...........>

FOREX: Central bank action remained in the spotlight after the FOMC said it may

cut rates, should the outlook worsen. Even as the FOMC did not live up to the

hopes of some doves, opening the possibility of a cut damaged USD, which emerges

from the Asia-Pac session as the worst G10 performer. Meanwhile, EMFX was bid on

the dovish Fed, with sharp rallies observed in KRW & TWD.

- The BoJ chose to leave its policy settings unch., capping recovery in USD/JPY,

amid the broad expectation of a more dovish statement.

- The kiwi topped the G10 pile, supported by a better than forecasted Y/Y GDP

print, coupled with an upward revision of the prior reading. Cross flows harmed

the Aussie ahead of a speech from RBA Gov Lowe, who said that it is "not

unrealistic" to expect a further cut to the RBA's cash rate.

- NOK was also buoyant as the Norges Bank may hike its policy rate later today.

- Participants await MonPol decisions from the BoE and Norges Bank, with ECB's

de Guindos, Rehn & Enria, Norges Bank's Olsen, Riksbank's Floden and BoE's

Carney due to speak. UK retail sales, EZ cons. conf. & U.S. Philly Fed Survey

are of note, with focus also on the Tory leadership contest & EU Council summit.