FX Update: The dollar majors have been holding narrow ranges
FX Update: The dollar majors have been holding narrow ranges so far today, with AUD-USD and NZD-USD relative outliers in showing respective declines of 0.2% and 0.3% heading into the London interbank open. USD-JPY has maintained a narrow range in the lower 108.0s and EUR-USD around the 1.1065-70 mark, consolidating after rebounding yesterday from Monday's bout of dollar-driven losses. The dollar itself had attracted a safe haven bid in early-week trading as markets reacted to news of the drone attack that took out about half of Saudi oil production and distribution facilities, though this petered out as oil prices staged about a 50% retracement of the surge seen on Monday (which was the biggest one-day rally in over a decade ), catalyzed by a report that suggested that production could be restored much faster than initially feared. Another factor that saw the dollar bid weaken was the Fed's $75 B injection into the financial system. Markets are now looking to the Fed's policy announcement today, where analysts expect a 25 bp cut and communication that pegs the move more as a mid-cycle adjustment and less as a second cut in a protracted easing cycle. The BoE, SNB and Norges Bank are due to make policy decisions tomorrow. The BoE is likely to a non-event, with no-change widely anticipated. The SNB is also expected to maintain unchanged policy, while the Norges Bank is expected to buck the global trend with a 25 bp hike. On the Brexit front, the UK Supreme Court is hearing the government's appeal on the ruling from Scotland's highest court that the government's suspending of parliament was illegal. A decision is expected tomorrow. Most likely, although not a certainty, it will agree with the recent court rulings seen in England and Northern Ireland, that the matter was "non-justiciable" -- being political rather than a legal matter.