The dollar edged higher against the majors at the start of the week, pushing the euro to 1.4612 and the British pound to 1.6136. With the FOMC meeting this week, traders will closely scrutinize the Fed's assessment of the economy in the accompanying policy statement. While interest rates are widely expected to remain on hold at 0.0%-0.25%, it will be interesting to note whether the Fed will provide clues on when markets can expect quantitative tightening to commence. The Fed will announce the results of its policy deliberation on Wednesday at 2:15 PM.
The economic calendar for Monday was light, with only the August leading economic indictors released. The figure fell short of expectations for an improvement to 0.7% and held steady from the previous month at 0.6%. The Tuesday session will see the September Richmond Fed survey and July home prices.
The US equity market was mixed with the Dow Jones and S&P 500 both drifting slightly lower, down by 0.4% and 0.3%, respectively, while the Nasdaq was up by 0.2%. Meanwhile, crude oil eased beneath the $70 per barrel level to $69.70 and spot gold held steady just above $1,000 per ounce.
The euro eased toward the 1.46-level to a one-week low at 1.4612 amid a dearth of economic reports. Interim resistance is seen at 1.47, followed by 1.4740 and 1.4770. Subsequent ceilings are seen at 1.48, followed by 1.4830 and 1.4865. On the downside, support starts at 1.4630, followed by 1.46 and 1.4550. Additional floors will emerge at 1.4530, backed by 1.45 and 1.4470.