Bank of America Merrill Lynch Research discusses the USD outlook into this week's FOMC November policy meeting on Thursday.
"We expect the FOMC to leave the Fed funds target rate unchanged at 2.00-2.25%, at the November meeting. We do not expect the meeting to be a major market event as there is neither a press conference nor a new set of summary economic projections scheduled. The policy statement should only have minor adjustments to reflect the latest economic data, highlighting the recent gradual pickup in wage growth and softening housing activity.
Importantly, we do not expect the statement to address the recent volatility in financial markets as most Fed officials believe overall financial conditions remain broadly supportive for growth
An unchanged Fed, as priced, combined with only subtle language changes suggests a generally muted idiosyncratic FX response on Thursday,"