All roads lead towards FOMC decision today - Westpac

Research Team at Westpac suggests that the main focus of todays session will remain the outcome of the FOMC as its importance is not so much the decision to deliver a 25bp rate hike - that result has been fully factored-in for some time - but for the message sent to the market via the "Dot Plot" and Chair Yellen's subsequent press conference.

Key Quotes

“We suspect that the Fed will continue with its long-held messaging of a gradual approach to further tightenings. As such they will aim to avoid market speculation of a faster pace of rate hikes and an underwriting of even higher long-end UST yields. Indeed, there has already been a tightening of financial conditions via recent yield rises and a surging USD. That should motivate the Fed to adopt a cautious approach to its messaging.”