FXstreet.com (Barcelona) - European markets are going through gains on Wednesday, although investors remain cautious ahead of the Fed's Monetary Policy Meeting. The Pound rallies to intra-week highs while the Euro advances after having bottomed on Tuesday.

Eurostoxx 50 Index advances 1.3%, while German DAX Index rises 1.4% and the same accounts for the French CAC Index. In the UK, the FTSE index trades advances 0.7% in the first hours of trading.

Today's session's focus is set on the Federal Reserve's monetary policy statement, due at 19.15 GMT, to assess the Bank's attitude about monetary tightening once U.S. economy seems to be coming out of recession.

Euro and Pound rallying from Tuesday's lows

EUR/USD bounced at 1.4625 low on Tuesday, and the pair has advanced up to resistance area at 1.4770 during European session. At the moment, the Euro remains trading in a narrow range right below 1.4770.

GBP/USD rally from 1.6250 low on Tuesday has extended above 1.6500 on the back of better than expected UK Services PMI data, and the Pound has reached an intra-week high at 1.6545.

USD/JPY has rallied from session low at 90.00, breaking above 90.70 resistance to hit a fresh intra-week high at 91.05, althpough the pair has not been able to hold above 91.00 anfd trades around 90.85 at the mpoment of trading.

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