Forex Today: GBP rebounds sharply in early Europe, a Big day ahead

Subdued trading activity was witnessed in the Asia session this Wednesday, as a calm was spread across the financial markets, as investors brace for the much-awaited FOMC decision. The Antipodeans were amongst best performers, as they cheered the overnight rebound in oil prices amid a surprise US draw. Meanwhile, the greenback traded on the back foot versus its major peers almost throughout Asia.

Ahead of the European open, cable’s recovery gained further traction, up almost 100-pips from the levels seen in Asia, which has triggered fresh selling in the USD across the board.

Moving on, we have an action-packed economic calendar, which somewhat collaborates to the aggressive start of markets in Europe. The UK employment data will fill in an other-wise light EUR calendar, while the US docket offers a bunch of crucial economic releases in the CPI, retail sales and Empire State manufacturing index. However, the main risk event for today remains the FOMC decision, followed by the FOMC economic projections and Yellen’s presser.

Main topics in Asia

EU could force May to wait until June to start Brexit talks - BBG

Overnight headlines reported by Bloomberg, cites unnamed EU officials noting that the European Union (EU) isn't planning to authorize Brexit talks until June 20.

Poll: Scots want to remain in the UK – The Times

Livesquawk reports latest poll conducted by The Times, revealing that Scots want to remain in the UK. 57% of the Scottish respondents rejected independence, the Poll showed.

Survey: Support for Scottish independence at highest ever - RTRS

According to a latest survey by ScotCen's Scottish Social Attitudes, support forScottish independence is at its highest ever, although showed that it might not be the best time for Scottish First Minister Nicola Sturgeon to hold a new referendum, Reuters reports.

New Zealand Current Account (QoQ) came in at $-2.335B, above forecasts ($-2.543B) in 4Q

China’s Li: Time to stop talking about a China hard landing

Chinese Premier Li continues to make a speech at the conclusion of the National People's Congress (NPC) on Wednesday.

Key focus for the week ahead

Big events ahead - ANZ

Analysts at ANZ explained that there is no shortage of event-risk in currency markets over the next 36-odd hours.

FOMC Preview: March 14th-15th Meeting

After a series of FOMC speeches that struck a noticeably more hawkish tone, markets shifted from anticipating a 6-month pause in 2017 to expecting a rate hike in the upcoming meeting.

Sterling can fall much further – Deutsche Bank

Oliver Harvey, Macro Strategist at Deutsche Bank, points out that Sterling has been the worst performing G10 currency this year and the main push-back against their continued bearish GBP call is that Brexit is fully priced and the pound looks cheap against fair value metrics.

BBG Survey: Economists see BOJ on hold for now

According to a survey of economists conducted by Bloomberg, the Bank of Japan (BOJ) is seen leaving its monetary policy settings unadjusted at its policy meeting this Thursday.

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