FOMC Rate decision coming out in few minutes

FOMC rate decision to come out at 19:15 GMT, expectations as 5.25% (unchanged) and we expect there should be hawkish accompanying statement from Fed Chariman Bernake which is likely to be consistent with his speech from Nov 28, where it was noted that "risk to inflation forecast are to the upside and that labor markets has tightened further"....

Also said that US Economy is likely to expand at moderate pace, with global economy continues to be strong. Direction post FOMC: we dont imagine any major suprise to the statement triggering very little movements in US rates.

On the FX side EUR/USD traded 30-40 pips higher after the last statement so a great deal of volatility is not expected