Dollar is mixed as investors remain cautious ahead of FOMC announcement tomorrow.

 Markets are expecting Fed to provide better guidance on quantitative easing, which much include the trigger for the first scale back of the $85b per month asset purchases. While the triggers could be unspecific, they should include at least criteria like improvement in unemployment rate or job creation at current pace. Also, markets will scrutinize the statement to get more hints on whether Fed would reduce the program in September. Adjustment in such expectations would trigger much volatility in dollar. But before, that, markets would likely tread water.

 

Data from US saw S&P Case-shiller 20 cities house price rose 12.2% yoy in May. Canadian IPPI rose 0.3% mom in June, RMPI rose 0.3% mom. Unemployment rate in Japan dropped more than expected to 3.9% in June, household spending dropped -0.4% yoy, industrial production dropped -3.3% mom in July. New Zealand building permits dropped -4% mom in June.