Session Recap: USD firmer ahead of data, FOMC eyed

FXstreet.com (Córdoba) - The dollar trades slightly higher Tuesday as investors gear up for Fed's policy decision tomorrow.

The GBP/USD came under pressure and dropped below 1.6100 amid month-end orders, while EUR/USD slid toward the 1.3750 zone. The USD/JPY recovered from Asian losses to trade nearly flat at the 97.65 area.

Elsewhere, the Aussie and the Kiwi weakened on the back of central bank commentary with RBA Governor Stevens warning yet again that AUD is overvalued, while RBNZ Governor Wheeler suggested the strong Kiwi would delay a rate hike.

During the New York session watch for US data including September PPI and retail sales, August business inventories and October consumer confidence.

Main Headlines in Europe:

European open: continued light trading ahead of the Fed

France Consumer Confidence steadies at 85 in October

Spain Retail Sales (YoY) improves to 2.2% in September from -4.8% in August

Flash: EUR/USD below 1.3800. FOMC meeting looms. What next? – Commerzbank and OCBC Bank

UK: Mortgage Approvals grow to 66.735K in September

UK: M4 Money Supply expands 0.6% in September

Greece September Producer Price Index (YoY) rises to -1.7% vs -2% (August)

China central bank restarts reverse-repo operations in confidence boosting attempt