The forex market plays a waiting game

The much weaker than expected Richmond Fed manufacturing could not even
dent USD bullishness (index -2 vs +8 expected). You can't really be too
USD bullish either, because if the FOMC policy statement tomorrow turns
out to be less hawkish than expected, the record USD longs could unwind,
leading to a downside stampede. Today we also heard from US Treasury
Secretary Paulson, repeating the mantra that he would clearly like to
see a more flexible Chinese currency. Paulson suggests a more flexible
Yuan would be in China and the world's interest. The same old story,
and I'm sure..