Session Recap: USD steady on a quiet start to the week

FXstreet.com (Córdoba) - The USD trades a tad softer at the beginning of the week as investors remain on the sideline ahead of the Fed's decision on monetary policy that will take place on Wednesday.

"There are now few participants, if any, that expect the Fed to reduce its long-term asset purchases now or even next month", says the BBH analyst team. "Many see September as a more likely time frame and a recent poll found the median expectation for tapering to take place in October".

In the FX space, EUR/USD and GBP/USD saw an early dip, but managed to trim losses throughout the European session to currently trade around 1.3340 and 1.5700 respectively. However, USD/JPY remains under pressure, hovering barely above 94.00, while the greenback consolidates slim gains versus the AUD and the CAD – the most vulnerable currencies to the uncertain environment.

Main Headlines in Europe:

Flash: FOMC in focus - OCBC

EMU: Trade surplus shrunk to €14.9 billion in April

European equities sail upwards Monday

Commodities Brief – Precious metals gripped in static trading, crude bulls ahead of resistances