S&P: Japan Ratings Lowered To 'A+/A-1'; Outlook Is Stable
PBOC Fixes Yuan Reference Rate At 6.3670 (prev 6.3712)
Asian stocks at three-week highs before Fed decision; dollar wary – RTRS
There is broad USD weakness ahead of the FOMC meeting tonight. EUR/USD fell below 1.1250 support and hit a low of 1.1210, but quickly recovered from there. It reached a high of almost 1.1320 ahead of the NY close and spent the Asian session in a 1.1285-1.1320 range. GBP/USD rallied sharply after better than expected UK employment data. Overnight, it saw some slight retracement at the Sydney open, but eventually recovered and mostly consolidated between 1.5505 and 1.5520. USD/JPY got a boost from the equity markets. All major APAC indices are up on the day and USD/JPY rallied from 120.35 to 120.65. Price action is usually quiet ahead of the FOMC, but Initial Jobless Claims and housing market data at 13:30 BST might bring some temporary volatility.
As for the FOMC meeting tonight, most major banks expect the Fed to keep rates unchanged, with only a few predicting a rate hike. The market generally is also expecting no changes in interest rates and a rate hike would be quite a surprise to many participants.