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Session Recap: USD weaker as FOMC meeting gets underway

FXstreet.com (Córdoba) - The USD trades mostly lower on Tuesday, although within recent ranges, as the 2-day FOMC meeting gets underway.

It is expected that the Fed will announce its intention to trim $10bn from its monthly bond-buying program tomorrow. As most of this has been already priced in, any deviation on this figure could trigger wild moves, with Fed's forward guidance becoming key at this point.

The EUR/USD was boosted by better-than-expected German ZEW figures, although it lacked momentum to rise beyond 1.3370. The GBP/USD and the USD/JPY are little changed on the day around 1.5900 and 99.00 respectively, while AUD/USD and NZD/USD trade higher, despite RBA minutes.

Main Headlines in Europe:

Markets focussed on FOMC on the European open, USD slides

EMU: Current Account surplus narrows to €16.9B in July

Flash: What’s the sentiment around the EUR/USD today? – Commerzbank and OCBC Bank

Dollar under pressure ahead of FOMC meeting, EURUSD continues gains

UK: Annual CPI at 2.7% in August, as expected

UK: Retail Prices rose 3.3% YoY in August

EMU: ZEW Survey-Economic Sentiment rose to 58.6 in August

EMU: Trade surplus rose to €18.2 billion in July

UK inflation continues to outstrip wages, GBP/USD pares gains on data

Euro given a boost by big ZEW Institute number, adds to gains against USD and JPY

GBP/USD parked around 1.5900

The sterling remains almost unchanged from yesterday’s close, alternating gains and losses around the key 1.5900 handle on Tuesday....
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