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Focus Turns to the Fed - Action Forex

Tonight at 20:00 CET the rate decision of this week's meeting in the FOMC is announced. We expect no monetary policy changes. With no new economic projections, focus will be on Powell's remarks in the press conference starting at 20:30 CET. We do not expect the meeting to be a major market mover, but see risks tilted towards a modestly hawkish reaction if Powell pushes back against the notion of rapid rate cuts and/or end to QT. Read more in our Fed preview - Patience and gradualism, 26 January. On the data front, January ADP private sector employment and Q4 Employment Cost Index will be released ahead of the rate decision. ....

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