As usual, it could go either way so it's best keeping out of any short term positions during the release, in ones humble opinion.
USD: Trading The FOMC On Wed - Morgan Stanley
Ahead of the FOMC meeting on Wednesday February 29, speculations about possible alterations in the Fed's forward guidance are starting to gain some traction in the market and that has put the USD under some pressure as of late, notes Morgan Stanley. "Alongside speculation regarding adjustments to the pace of tapering, market expectations are likely to increase regarding the potential for the unemployment threshold to be adjusted from the current 6.5%, especially given that the latest US data have been far more mixed," MS clarifies. "However, our US economics team believes that the Fed is more likely to continue to ... (full story)