Session Recap: USD softer ahead of FOMC statement

FXstreet.com (Córdoba) - The USD trades a touch softer Wednesday, having cut some of yesterday's gains, as investors square positions ahead of the release of the Federal Reserve's policy statement.

However the Fed is expected to keep its bond purchases at current levels and the FX market reaction could be limited.

Even though the dollar weakened a tad, most pairs remain virtually standstill within familiar ranges. EUR/USD rose to the 1.3770 area while GBP/USD is trading above 1.6050. The USD/JPY managed to cling to gains at the 98.20 zone while AUD/USD climbed back above 0.9500.

During the New York session watch for US ADP employment report, CPI and of course the FOMC statement.

Main Headlines in Europe:

European open: Key German data before Fed announcement this afternoon

Spain Gross Domestic Product - Estimated (QoQ) improves to 0.1% in 3Q; -1.2% (YoY)

Switzerland: KOF Leading Indicator grows more than expected in October

Germany: Unemployment Rate at 6.9% in October


Moderate dollar support on short covering ahead of Fed

EMU: Consumer Confidence at -14.5 in October, as projected

Decent demand at Italian debt auction, yields fall