FXstreet-com (London) - As we approach half way through the Asian session, Dollar is broadly trading softly, ahead of FED policy meetings on Tuesday and Wednesday. Markets will as usual be looking for tone and language when the Central Bank releases its provisions.
Consumer Price Index and Producer Price Index will be a good barometer for inflation concerns, as previous statistics have shown that producers are in fact taking the brunt of the slow moving economy.
The broad picture for the Greenback at this time in the session looks like this: EUR/USD 1.4636/8 (+0.08%), Swissy 1.0330/3 (-0.10%), Cable 1.6215/20 (-0.19%), USD/JPY 88.53/8 (-0.46%).
The main market driver this session, the Tankan, was received as mixed by investors as Asian stock markets drifted downwards. The Nikkei shed 0.8%, Australia following, down 0.2%, and the Kospi matched Australia's S+P losses.
Cable, the only pair to show dollar strength, will find primary resistance and 1.6247, and on the downside 1.6195.
Franco Shao, of ForexCycle.com,foresees sideways trading as the pair consolidates with a slight bearish bearish trend: After breaking below 1.6271 support, GBPUSD formed a trading range between 1.6167 and 1.6371. The price action in the trading range is more likely consolidation of downtrend from 1.6721. As long as 1.6371 resistance holds, we'd expect downtrend to resume and one more fall towards 1.6000 area is still possible.