Session Recap: It's all about the Fed, USD stagnant

FXstreet.com (Córdoba) - The USD is trading largely within yesterday's ranges versus most competitors ahead of the much anticipated Fed decision and subsequent Bernanke's press conference.

While most analysts don't expect the Fed to taper its stimulus program quite yet, they agree Bernanke language will be crucial for market reaction as investors struggle for clues on the future course of US monetary policy.

In the FX space, EUR/USD oscillated around 1.3400 while GBP/USD fell back to the 1.5600 zone in the wake of latest BoE minutes. USD/JPY briefly dipped below 95.00 and trades virtually unchanged at the 95.15 zone ahead of the NY opening.

Quietness became notable in other financial markets as investors remain on the sidelines waiting for Bernanke, with European stocks wavering between small gains and losses.

Main Headlines in Europe:

BoJ's Kuroda sees financial markets stabilizing over time

Eurozone won’t revise Cyprus bail out conditions

BoE Minutes: MPC voted 6-3 to keep QE unchanged

EMU: Construction Output grows 2% in April

IMF: Spain has made progress on reforms…..

European equities record modest gains