European session review: USD little changed ahead of Fed’s policy update

USD traded mixed and little changed against other major currencies in the European session on Wednesday, as markets awaited the announcement of the outcomes of the  Federal Reserve's policy meeting later today.

The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, edged up 0.02% to 93.23.

The two-day policy meeting of the U.S. central bank will end later today and its outcomes will be released at 18:00 GMT. It is widely expected that at their September gathering the Fed officials will leave key interest rates unchanged at record low levels and will confirm their plans to start QE tapering by the end of the year but will hold off providing details or a timeline for a month or two. 

The latest U.S. economic data painted a mixed picture, providing no certainty on the Fed's stimulus tapering timeline. The last official employment report showed that the pace of jobs growth slowed sharply in August amid a surge in Delta infections, while CPI data revealed a smaller-than-expected increase in consumer prices last month, suggesting that inflation might be starting to cool, and retail sales posted a surprise surge.