FXstreet.com (Barcelona) - Dollar has been under pressure along todays session, reaching weekly lows against its majors counterparts. The reaction on the worst than expected US Q1 GDP was limited by the market focusing on the FOMC rate decision.

EUR/USD has risen 1.47% so far today to reach the 1.3340 level, fresh 2-weeks high. GBP/USD has advanced 1.00% to 1.4815, new one-week high. USD/CHF has fallen for second consecutive day and the pair has reached a fresh 3-week low at 1.1300. NZD/USD has climbed up near to 3.00% to post 0.5780 today, fresh two-weeks high ahead the RBNZ Interest Rate Decision.

On the other hand, USD/JPY has driving its own way on weak JPY crosses, rising 0.50% so far today to trade above 97.00 level.

Market has been lead by FOMC rate decision, expectations are to hold interest rate at 0.25% and experts are looking for what FOMC will say about the next actions.

Michael J. Malpede, analyst at Easy Forex, says: The trade awaits this afternoons FOMC policy decision. The FOMC is expected to hold rate policy unchanged and continue its purchase of US treasuries. The USD plunged after last month's FOMC meeting pressured by Fed's announcement of quantitative ease. It's hard to see how today's FOMC meeting will have much of a shock impact on the FX markets unless the Fed announces additional quantitative ease measures. Some analysts suggest that today's continued USD slide is due to anticipation that Fed will announce additional quantitative ease measures later today.

According to Kathy Lien, Director of Currency Research at GFT, If Fed expands their asset purchase programs, it would be dollar negative: The market expects the Federal Reserve to leave their FOMC statement largely unchanged which includes leaving their growth forecasts and purchase programs intact. This is very important because any changes will trigger a reaction in the currency market. If the Fed cuts their growth forecasts or expands their asset purchase programs, it would be dollar negative. If they leave their forecasts unchanged, which is what we expect, it could actually accelerate the gains in the U.S. dollar. It is very unlikely that the central bank will increase the size of their asset purchase program given the recent improvements in the financial markets including the rally in U.S. equities and the narrowing of the LIBOR and Overnight Swap Index (OIS) spread. Economic data has been mixed since the last meeting with manufacturing, housing and consumer confidence stabilizing. However the labor market remains very weak and that will cause some gray hairs for the members of the Federal Reserve's monetary policy committee. Therefore it would be premature for the Fed to adopt an optimistic tone. Central bank rate decisions have become less and less important and therefore unless any major changes are announced, which we do not expect, the currency market's reaction following the FOMC meeting should be limited.

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