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The markets are relatively quiet as traders are waiting for the Federal Reserve rate decision tomorrow. Most of the Asian stock markets are almost unchanged on the day. In the FX market, the Dollar is slightly stronger, but all major pairs consolidated in tight ranges overnight.
The market has almost fully priced in a rate hike by the Fed tomorrow, and it is unlikely that the central bank will disappoint. However, the question is whether the Dollar can continue to appreciate much further. A rate hike alone is unlikely to support the currency much, as it is already expected. Much will depend on the FOMC statement and the comments by Fed Chair Yellen.
EUR/USD traded in 1.0645-60 range in Asia. The pair briefly broke above 1.07 yesterday, but quickly reversed those gains. A major breakout seems unlikely ahead of the FOMC. USD/JPY has been bid again, although resistance above 115 has proved to be heavy. Important support now lies at 114 and 113.60.