Citi discusses its expectations for today's FOMC meeting.
"Should the Fed officially prep markets for a taper announcement in two months, the USD is likely to tactically strengthen. Alternatively, a more ‘dovish’ lean would help stem the greenback’s latest advancements," Citi notes.
"Overall however, we think that the FOMC is unlikely to have huge implications on the dollar. Whichever way the taper hint is delivered it won’t be a huge shock to the market - it’s coming soon. Whether it be a month or two earlier or later is unlikely to matter much for markets that have been preparing for the moment for the last year. What’s $15bn a month in tapering when we’re about to release $140bn of dollar liquidity into the market across four days?," Citi adds.