[MARKET ANALYSIS] Currencies lack direction as the FOMC looms

DXY: Flat

• Price action is uneventful after retreating yesterday alongside a decline in yields and with the buck also not helped by mixed data, while the attention turns to the approaching flurry of central bank policy decisions, including the Fed, which is expected to stand pat but will also release its latest projections.

EUR/USD: Flat

• Trades sideways after returning to the 1.1500 territory and with very little currency-specific news, while it was also reported that the EU moved to delay raising bank capital requirements over competitiveness concerns.

GBP/USD: Flat

• Paused overnight after regaining a footing at the 1.3300 handle and with UK Chancellor Reeves seeking a framework to build the relationship with the EU, without constant renegotiation, although price action has since quietened down amid a light calendar for the UK for most of the week heading into Thursday's BoE meeting.

USD/JPY: Flat

• Conforms to the indecisive price action amid recent oil swings and ahead of tomorrow's BoJ policy announcement, in which the central bank is unanimously forecast to refrain from any policy tweaks.

Antipodeans: AUD/USD +0.1% / NZD/USD +0.1%

• Remains afloat amid the mostly positive risk environment and with AUD/USD holding on to its post-RBA spoils.