Media headlines surrounding the huge East Coast blizzard should fade just in time for the latest Fed statement on Wednesday. Although referencing international risks, the FOMC is likely to avoid excessive pessimism while insisting that future rate decisions will be data dependent. In this environment, the dollar should maintain a firm overall tone, especially with expectations of continuing dovish policies elsewhere in the G7 and capital outflows from vulnerable economies. Risk appetite will remain fragile, but there is likely to be a further underlying basing action with solid USD/JPY and AUD/USD buying on dips. The ... (full story)