The euro bounced off its lows against the dollar around the 1.46-figure, to recover near the 1.4650-mark while the sterling rebounded above the 1.63-level at the start of the week. Economic data will remain in focus in the coming week with key reports due out from the US, Eurozone, UK, Canada and Japan. The major global equity bourses were marginally higher on the session, while spot gold edged up slightly from its one-month lows near $1,125 per ounce and crude oil slipped beneath the $70-per barrel mark.

The FOMC kicks off its two-day monetary policy meeting tomorrow with the decision slated for announcement on Wednesday afternoon. While no change is expected in the Fed's benchmark lending rate, seen standing pat at 0-0.25%, markets will closely scrutinize the accompanying statement for additional clues as to when the Fed may begin reining in its quantitative easing.

The US economic calendar in the coming week consists of November producer prices, December NY Fed manufacturing survey, October TIC flows, November industrial production, capacity utilization, December NAHB housing market index, November consumer prices, building permits, housing starts, real earnings, weekly jobless claims, Philadelphia Fed business survey, and leading economic indicators.

Euro Stabilizes above 1.46

The euro continues to trade around its 100-day moving average, situated around the 1.4650-level. The Eurozone economic reports released overnight were mixed, which saw October industrial production decline by more than expected at -11.1% from -12.9% a year earlier, while declining by 0.6% on a monthly basis from a 0.3% increase previously. The Q3 employment index was unchanged on a quarterly basis at -0.5% while deteriorating slightly to -2.1% from -1.8% a year earlier.

In the session ahead, the key highlight will be Germany's December ZEW sentiment survey. The economic sentiment is seen slipping to 50.0 from 51.1 in November while the current situation component is estimated to improve to -61.0 from -65.6.

EURUSD trades near 1.4650 with support seen at 1.4620, followed by 1.46 and 1.4550. Additional floors are eyed at 1.45, backed by 1.4460 and 1.4430. On the upside, resistance is seen at 1.4680, followed by 1.47 and 1.4740. Subsequent ceilings will emerge at 1.4765, backed by 1.48 and 1.4850.