There was some positive data out of the US including the Empire State manufacturing index, industrial production and the NAHB housing market index. However, investors seem to be looking ahead to the Fed meeting.
The IMF was also on the wires downgrading the US growth forecast for 2014 to 2% (from 2.8%) and maintained 2015 growth at 3%. Major currency pairs just continue to hold tight ranges with uncertainty remaining the dominant theme.
Gold retreated from its highs in Asian trade after encountering a downtrend resistance which has been in place since April. The downtrend came in at around 1282 and the precious metal failed to close above this level. This could result in a near-term reversal to the downside. The yen was surprisingly subdued and even a round of impressive US economic data wasn’t enough to push USD/JPY any higher.