FOMC ruffles few feathers - The FOMC rate.....>

FOREX: FOMC ruffles few feathers

- The FOMC rate decision came, went and was largely inline with expectations.

The USD underwent it's usual post-decision bout of volatility but there was no

long-lasting impact on currency markets. The Fed did move to modestly tweak

language on inflation (current stance of policy is appropriate to support

inflation returning "to" the Fed's symmetric 2% objective, rather than "near"

the 2% objective but made no commitment to a standing repo facility.

- For yet another session, Coronavirus fears dominated as equities were dragged

lower as almost every major airline chose to cancel flights into and out of

mainland China for as long as a month. This, twinned with Powell's observation

that the Fed sees asset prices as "somewhat elevated", gave markets the perfect

excuse to trim the day's gains ahead of the close. Attention turns to the WHO's

decision on whether to deem Coronavirus a public health emergency on Thursday.

- Regional German CPIs are due as well as advance US GDP and the Bank of England

rate decision. Analysts and markets are split down the middle on whether Carney

and the MPC will cut rates by 25bps.