The greenback traded heavily heading into.....>

FOREX: The greenback traded heavily heading into the FOMC decision, but managed

to pullback all of the lost ground as the FOMC hiked the FFR & IOER alongside

some sweeping changes to the accompanying statement. - Markets initially seemed

to focus on the Fed deleting the forward guidance that noted that the FFR "is

likely to remain, for some time, below levels that are expected to prevail in

the longer run" with no replacement or 'dovish' offset to counter. The moves in

the dollar coincided with further flattening in the US Tsy curve. Fed chair

Powell also confirmed reports that the Fed will hold press conferences after

every rate decision from January '19.

- A market that's already long USD may find difficulty in pressing the USD

higher still, making Asia and Europe's interpretation of the Fed key. The DXY

has already fallen back below pre-Fed levels, as traders faded the move, perhaps

after Powell conceded that the Fed will be in the "neutral zone relatively

soon," while the FOMC is being very careful "not to tighten too quickly."

- ECB MonPol decision, Aussie labour market report, UK retail sales & China

activity data headline on Thursday.