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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY (Córdoba) - The USD started the week mixed against major competitors, advancing against the JPY and the CHF, but losing ground against the pound and commodity currencies as sentiment improved somewhat during the European session.

The EUR/USD failed to sustain gains despite a strong IFO report and slid all the way back toward the 1.3670 zone just where it started the day. The GBP/USD managed to cut last Friday's losses and rose to a high of 1.6570.

Looking to the rest of the day, the session bears the US new home sales and Dallas Fed manufacturing index, with market focus on Wednesday's Fed meeting. "The FOMC decision on Wednesday should be the highlight with both ourselves and all other analysts almost unanimously expected a further $10bn of tapering to be announced in what should be a fairly uneventful last meeting with Ben Bernanke as Chair", says the TD Securities analyst team.

Main Headlines in Europe:

European open: Broad risk-off sentiment dominates overnight session

Germany: IFO – Business Climate up to 110.6 in January

Flash: What lies ahead of the EUR/USD? – Commerzbank and TD Securities

Commodities round-up: Fed will drive gold volatility, weather pushes natural gas to four year high
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