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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY (Córdoba) - The USD trades from steady to slightly lower versus major competitors heading into the FOMC monetary policy decision. While expectations are that the Fed will proceed with a light taper ($10 billion to its current $85 billion program), investors will be closely watching forward guidance.

After months of speculation about the Fed's intentions, caution ruled in most markets ahead of the decision. USD has been under pressure since the latest NFP report (Sep 6) which came weaker-than-expected and selling pressure has been reinforced this week after Summers withdrew from the race to become Fed Chairman, leaving dovish Janet Yellen as the main candidate.

As for today's price action, EUR/USD has continued to hover around 1.3350 in a calm session while USD/JPY faced mild pressure and briefly dropped below 99.00. The Sterling was among the best performers after the BoE minutes showed the MPC unanimously voted to maintain the policy unchanged, climbing to fresh 8-month highs versus the dollar and the euro.

Even though the US calendar includes housing data, pairs are expected to remain rangebound ahead of the Fed statement.

Main Headlines in Europe:

European open: FOMC remains the centre of attention, NZD a good play on monetary policy

Flash: FOMC meeting looming. What about the EUR/USD? – Danske Bank and Commerzbank

Approaching the German elections DAX challenges record highs, Merkel threatened by coalition weakness

BoE Minutes: MPC voted unanimously in favor of keeping QE and bank rate unchanged

EMU: Construction Output increases 0.3% in July

Bank of England surprises nobody, but GBP bulls could be under threat

Cyprus to scrap capital controls in January 2014
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