European session review: USD trades mixed ahead of Fed's policy decision

USD was mixed against its major counterparts in the European session on Wednesday, as investors awaited the announcement of the U.S. Federal Reserve's policy decision later today. It rose against CHF, fell against JPY, GBP, AUD and NZD, and changed little against EUR and CAD.

The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, edged down 0.01% to 90.53.

The outcomes of the meeting will be announced today at 18:00 GMT, and the Fed's Chairman Jerome Powell will follow with a press conference a half-hour later.

While the U.S. central bank isn't expected to make any changes in its ultra-low interest rates or begin trimming its $120 billion in monthly asset purchases at its June meeting, market participants will be monitoring the Fed’s updated policy statement and Powell’s comments closely for the forecasts on the U.S. inflation pressures, the strength of the economic recovery and any clues on when it might begin pulling back on monetary stimulus. Economists suggest that the Fed might acknowledge the first conversations among its policymakers about a reduction of its bond-buying program, but a tapering strategy is likely to be announced formally in August or September.