The yen is in firm control as the USD/JPY drops below the 112.50 level, falling for the fourth straight day.
Yen pairs are generally on the back foot, led by the AUD/JPY which is testing the 80.80 December low. The EUR/JPY is down only slightly and remains in a tight range, in contrast to the GBP/JPY is which challenging the December lows.
The dollar pairs are in the black, helped by the dollar index easing off the pace ahead of today’s Fed meeting. Rates are expected to increase by 0.25%, but it is the pace of future developments which is weighing on the Greenback this morning.
The EUR/USD continues to perform well, rising for the third straight day this week and erasing all of Friday’s losses. The GBP/USD is higher, though lagging this morning, helping the EUR/GBP to nudge higher.
The USD/CAD is slipping this morning, but it remains at an elevated position at the highs, despite pulling back from 1.3500 yesterday.
The USD/CHF remains above the 0.9900 level after a successful hold yesterday.
Gold is pushing its highest levels since the Summer thanks to the weaker dollar and global uncertainty.
Today, we have UK CPI at 09.30, released alongside PPI and RPI.
Canadian CPI data is released at 13.30.
At 19.00, we have the FOMC statement and economic projections, with the press conference to follow at 19.30.
New Zealand GDP is at 21.45.
The USD/CHF is in a rangebound impasse right now, but we are likely to see some decisive moves following today’s FOMC meeting.