The Japanese are clearly pretty happy with the level of the yen. There's quite a long way for the yen to go before officials will become concerned.

The market is getting bulled up on the China angle once again and dollar/yen has followed that,

The euro is trying to grind higher but it's still in a range. The tone of a post-decision press conference will be important.

The market got ambitious in what they were expecting from the Fed. The fact that the statement mentioned energy costs having some impact on consumer spending led some to be a bit cautious on the future growth outlook.

Cable (sterling/dollar) could go lower in the first half of the year as we think the Fed will continue to hike rates, but in the second half we might see a recovery in sterling.

Interest rates, I think, will start to fall in the U.S. in 1999, suggesting that the Euro will outperform the dollar in the early stages.

The Fed is going to hike more than the market is anticipating. A crossover would inevitably put more pressure on the pound.

At the same time we had Greenspan reinforcing that the U.S. growth backdrop and rate outlook are positive for the dollar.

The U.S economy is continuing to grow strongly and so there's plenty of justification for the Fed to keep raising rates. The dollar's pre-eminence is going to be maintained against the yen and the euro.

The U.S. economy is still powering ahead and that keeps the market firmly focused on the fact that the Fed has further to go. With yield spreads widening out again the dollar can keep rallying.