The dollar was steady in late deals as trading entered a lull ahead of the much awaited US rate decision and accompanying statement later this afternoon. The euro dipped a touch ahead of the Fed's meeting, falling to USD1.1673 by 1700. Against sterling, the single currency was also down, slipping to STG0.6886. While analysts agree that the US Federal Reserve will keep interest rates unchanged today, the statement accompanying the verdict will be closely read for any change from the previous stance.
The question, however, is whether the FOMC will reiterate that rates will remain accommodative for a considerable period. The afternoon's US data came in strong but had little impact on the forex market as attention remained fixed on the FOMC, analysts said. But they noted that if the FOMC's statement proves benign, the dollar will likely get a boost, partly in a delayed reaction to the afternoon's robust data. The Conference Board's Consumer Confidence Index rose to 81.1 in October from a revised 77.0 in September. The increase in consumer confidence was larger than the expected rise to 79.1 in October. //www.fxcentre.com