USD stays in choppy consolidation on FOMC as expected since keeping the rate unchanged at 1.5% with slightly hawkish tone. The market currently pricing the 88% of FOMC March rate hike by 0.25% and this year remains in 3 hikes. USD sold down gradually after turning all the facts except for USDJPY which remains in some short coverings after the BOJ keeping the bond buying and higher in US stocks and rising UST yield effect. But still in corrective nature overall with under 110 handle.
GBP rebound sharply to 1.4268 earlier from the Tokyo low of 1.4156 with increasing more demands for GBP cross (EURGBP, GBPJPY) that driven the underlying move. But overall GBP remains in large swinging move.
The leaked in EU memo suggests that EU is threatening UK with extreme consequences if it tries to become more competitive after leaving. The rebound in EUR is made by following GBP strength and the effect on retracing broad USD. And today’s the Eurozone Manufacturing PMI will have some shallow impact.
Commodity currencies remains in firm tone with the unchanged broad USD weaknening trend in short term. Today US Jobless claims, unit labor cost, construction spending, manufacturing PMI, ISM manufacturing data as well as stock/bond market move will dominate the intraday action.