###POV. As the market sits on its hands.......>

FOREX: ###POV. As the market sits on its hands ahead of the release of todays

FOMC where MNI's PINCH - Probability of Interest Rate Change (please contact

sales for further information), sees a 1.4% chance of a rate hike. Today's focus

will turn to the dotplot, looking for an indication that a Dec rate hike stays

in the dot.

-GS and Nomura are in agreement that the FOMC meeting will focus on the balance

sheet roll off commencement in October.

- A senior trader based in N.A has noted that if we do see a December rate hike

remaining within the dots, we should see a burst of demand for dollars, however

it will be a reactionary move and certainly not a dollar direction indicator for

the medium term. 

- HSBC believes that a 25bp hike in Dec, with a median projection is for an

additional 3 25bp hikes in 2018 and again in 2019.