Greenback takes it on the chin as Fed errs....>

FOREX: Greenback takes it on the chin as Fed errs dovishly

-Despite the opening statement from the Fed initially appearing upbeat (the

statement removed the reference to 'uncertainties' around the outlook), the

greenback took a turn for the worst during Powell's press conference as he

divulged that "a number of [FOMC members] did write down overshoots of inflation

as appropriate, under appropriate policy". The comment spurred a decent wave of

USD selling, helping boost the likes of EUR/USD and AUD/USD to the best levels

of the month.

-The move seemed to slow slightly, however, as Powell indicated a lack of

appetite to expand their purchases of short-term coupons securities - but this

failed to pick the USD off the mat, which was the worst performing G10 FX

Wednesday. AUD was at the top of the table, with domestic banks tightening

liquidity constraints and renewed optimism over a US tariff delay.

-The ECB and SNB rate decisions are due Thursday as well as weekly US jobless

claims and the PPI report for November. BoJ's Amamiya, ECB's Lagarde and BoC's

Poloz speak.