January FOMC meeting preview what to expect and forex implications - ForexLive

1/28/2019

The Federal Open Market Committee meeting announcement is due 30 January 2019 at 1900GMT

Earlier post on what Morgan Stanley are looking for:

This now, in brief via TD:

The FOMC is likely to stress patience and data dependence in part by removing the last vestiges of forward guidance in its statement. Risks should remain "roughly balanced."
Market anticipation for a substantive announcement on ending balance sheet runoff is likely misplaced, but we could see Powell hint at the possibility of a larger balance sheet than in past comments.
FX: Cognizant of a "buy-the-rumor, sell-the-fact" dynamic, we expect the USD to return to the range lows ahead of the meeting, while high-beta FX sustains its bid. The loss of Fed leadership should anchor USDJPY lower however.

Bolding mine

Separately, Kitco have a piece also via TD, focus on commodites and gold, worth checking out for a little bit more:

"The Fed has the potential to set the overall tone for commodities, as a dovish tilt could go a long way towards removing a considerable impediment to emerging market and speculative demand for commodities"

Like MS, TD also mention the WSJ story last week:

"Late in the week, a WSJ story musing on the prospects of an early end to the Fed's balance sheet runoff also saw most assets rally, with gold and precious metals strengthening sharply in response
Considering the market's recently found optimism with respect to an early-end to the Fed's balance sheet runoff, we suspect that the bar is high for a positive reaction for risk assets."

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