Tepid Trading, Investors Await Data

In lackluster trading, the U.S. Dollar Index continues to struggle broadly despite slight gains made early in the Asian session. Currency strategists say that it's clear that investors are treading cautiously as they await a monetary policy decision from the Federal Reserve Bank on Thursday. Though the Fed had earlier this year hinted at the gradual and imminent withdrawal of its easing scheme, there is some concern that the Fed's stance might be now be more dovish. The Index, which gauges the greenback's relative weight against most of its major rivals, was trading at a 5-week low at the beginning of the week, as investors speculate that the Fed will hold interest rates at their current historic low and delay the reining in of the QE scheme.

The U.S. Dollar Index was trading at 81.855 .DXY, relatively unchanged in Tuesday's trading day. The EUR/USD also failed to significantly breach a key resistance level above $1.33 and was trading at $1.3260, pulling away from a 6-week peak of $1.3302. Meanwhile the USD/JPY pair traded at 98.08 Yen, moving away from a 1-month low struck on Monday. Markets will be turning their attention to the U.S. later today when 2nd quarter GDP figures are released; analysts expect the reading to be at 1.0% year-over-year, and a downside surprise will reinforce the Fed's anticipated decision.