Two down, one to go

ECB bond buying program put in place? Check.

German Constitutional Court approves ESM with minimal conditions? Check.

The last leg of this three-legged stool comes around midday tomorrow when the FOMC announces its monetary policy decision after a two-day meeting.

At a minimum, the market expects the Fed to push back its forecast for a first rate hike (so-called “forward guidance”) until mid-2015. Most see a move to an opened ended QE program with perhaps a mix of Treasuries and mortgage-backed securities.

Just adjusting the guidance while announcing no new QE should see a surge in the dollar and a sell-off in risk.