By Cornelius Luca
New York, May 15 (BridgeNews) - The dollar was mixed ahead of this afternoon's Federal Reserve decision, with the market generally forecasting a 50-basis point cut of the key domestic interest rates. One day after falling to a 26-day low of 87.27 cents to the dollar, the euro rose on profit taking. The dollar extended its grinding gains versus the yen, reaching so far a two-week high of 123.61.
* * * Dollar/Swiss franc fell from Monday's 26-day high of 1.7554 on position squaring, while sterling/dollar remained sidelined still within Friday's range.
Dollar/Canada rose for the fourth consecutive day to a 26-day high of 1.5561.
Tuesday's event agenda also includes a speech by Treasury Secretary Paul O'Neill soon after the announcement of the Fed's decision. Flows and position squaring will dominate activity Tuesday, with most traders likely to remain sidelined or trade light amounts.

Current Previous Change Global Global
NY open NY close low high

USD/JPY 123.56 123.33 0.23 123.09 123.61
EUR/USD 0.8777 0.8742 0.0035 0.8738 0.8779
EUR/JPY 108.45 107.77 0.68 107.68 108.47
GBP/USD 1.4191 1.4192 -0.0001 1.4171 1.4197
USD/CHF 1.7451 1.7517 -0.0066 1.7449 1.7521 USD/CAD 1.5539 1.5525 0.0014 1.5517 1.5561 AUD/USD 0.5171 0.5193 -0.0022 0.5155 0.5195 NZD/USD 0.4170 0.4196 -0.0026 0.4159 0.4196 SP.1 1254.10 2.10 1249.50 1254.90 ND.1 1815.00 7.00 1798.00 1822.50