Flash: There should be little market tension on Wednesday's FOMC - Westpac

FXstreet.com (Barcelona) - In today's note to clients, Sean Callow, FX Strategist at Westpac, notes how even Fed hawks such as Richard Fisher are admiting that the timing is not right to reduce QE, which leads Callow to believe there should be little market tension on assuming a major change in Fed policy later today when the FOMC is due.

Key Quotes

"However, any subtle changes in the language of the statement could be seized upon. Key phrases used in Sep that could be tweaked include “underlying strength” in the economy, a “moderate” economic growth pace, “further improvement” in the jobs market and “strengthening” housing. Another key line is whether the FOMC still believes “downside risks to the outlook for the economy and the labor market” have diminished."