TD Research discusses its expectations for today's FOMC policy meeting.

"We expect follow-through on talk about making QE more accommodative. The statement is at least likely to include new forward guidance and strike a balance between positive vaccine news and near-term challenges. We expect a lengthening of the WAM of purchases as well, but that is a closer call," TD notes. 

"FX: Our base case sees further downside risks for USD, but its downtrend is now increasingly mature. Stretched positioning & valuation considerations may ultimately be a limiting factor on a dovish outcome," TD adds.