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USD Index Trades Either Side of 91.00 Pre-Fed

FOREX
  • With focus on the Fed rate decision later today, markets are trading inside their recent ranges with equity futures broadly flat, although US 10y yields are inching higher. The USD index holds the week's gains into the NY crossover, trading either side of the 91.00 handle.
  • CHF, AUD and JPY are trading poorly, while NOK, NZD are trading more favourably. USD/JPY's minor uptrend this week remains intact, with the pair touching 109.08 and extending the bounce from the late Friday lows of 107.48.
  • Their April decision is not seen as a major factor for markets at this juncture, with the board expected to stay the course on policy and steer clear of any discussion over the tapering of asset purchases.
  • Outside of the FOMC decision, Canadian retail sales and speeches from ECB's Rehn, Schnabel and Lagarde are due to cross.

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