The FX market calmed down before the FOMC meeting, which will be held tomorrow morning Australian time. The USD index is moving around 100 as bets on stronger USD were only partially closed. The main forecast is still expecting Fed will delete ‘patience’ in the statement and pave the way for rate hike at June. However, the major risk now is Fed’s concern on the aspect that strong Dollar will pare the US economic recovery as recent data is not that satisfactory, except for the job market. In that case, we will see a major retreat of the Dollar, and the bulls shall realize that risk. Euro Dollar rebounded to 1.0650 ... (full story)