Dollar retreats slightly ahead of Fed.........>

FOREX: Dollar retreats slightly ahead of Fed decision

-The greenback has ebbed lower throughout the Asia-Pacific and European

sessions, but pullbacks remain modest, ahead of the Fed rate decision later

today. 50-dma support also counters any deeper decline, currently sitting at

96.60. The Fed are largely expected to hike rates by 25bps later today, but

could indicate the pace of increases in 2019 to be slower than previously

estimated. See MNI Fed Preview for full details.

-NOK is the best performer in G10 - but the weekly performance remains deeply

negative. Commodities prices have risen a touch today, with WTI crude futures

capped well ahead of $47/bbl.

-EUR is benefiting from improving Eurozone peripheral bond markets, with

Italian, Greek and Spanish 10yr yield spreads tightening nicely ahead of the NY

crossover. Market focus remains on the gradual progress of the Italian budget,

which is now seen as likely to get the thumbs up from Brussels.

-Other than the Fed, Canadian CPI for November and US existing home sales is

also due.