-USD was initially bid on the Fed's rate......>

FOREX: -USD was initially bid on the Fed's rate hike, which introduced a forward

guidance tweak stating the FOMC see "some further gradual increases". Rallies

were somewhat modest however, with USD/JPY pulling back to unchanged relatively

quickly. After Fed chair Powell's press conference, DXY inched above the 97.04

level near session highs.

-Meanwhile the EUR outperformed as Brussels confirmed that Italy would not face

an excessive deficit procedure - the latest strong suggestion that Rome's budget

plans are approaching a happy middle ground. EUR/USD eyes the 100-dma at

$1.1488. Elsewhere NOK performed well, recovering ground alongside bouncing

commodities markets, but rallies still remain far too shallow to switch the

outlook bullish.

-Focus turns to rate decisions from the Bank of England and Riksbank,

Australia's November jobs report, UK retail sales and New Zealand trade balance.