The USD is continuing in two-way action as the majors continue to consolidate off their weekly lows; traders note conditions remain thin and the lack of US fundamentals are keeping some sidelined ahead of the FOMC rate announcement tomorrow. After early gains in the Greenback overnight better-than-expected overseas data helped to hold the GBPO and the EURO higher although both pairs looked for new lows in early New York but reversed losses to close better on the day as early intraday shorts covered back as the day wore on.

Better US equities prices helped to support EURO as well keeping the rate off the lows into the close. GBP overnight lows went unchallenged in New York trade at 1.3928 but the rate followed EURO lower as EURO made new lows at 1.3118 but spent very little time on the lows rallying back to trade the 1.3180 area for most of the day. High prints in GBP at 1.4245 remained unchallenged in New York making the day a net higher day but off the highs to finish 1.4140 area. USD/JPY had a more rangey day topping out at 90.08 overnight and making lows in New York at 88.42 only to finish about unchanged on the day.

Traders note that volumes were thin everywhere and despite better tone of stocks no one wanted to get on the buy side in size today. Technical trade in USD/CHF continued to define near-term direction as the rate failed to extend in either direction today with lows at 1.1312 overnight and highs at 1.1437 with a mid range close; traders say concern over SNB potential intervention is keeping a base under the markets but note that stops are building under the 1.1280 area to the downside and about 1.1480 on the upside making for potential whipsaw.

Same story in USD/CAD in thin conditions as well; high prints at 1.2335 during New York with a drop back to unchanged on the day after lows in Asia at 1.2150; large range today mostly due to thin conditions traders say. For the most part today was a point of indecision for the USD; highs failed to attract buyers and lows found no sellers. Stops in all pairs were light and likely residual suggesting short-term time frame traders active with big players sidelined ahead of more news due later this week. Look for the Greenback to continue sideways and consolidate tonight; volumes should remain light and most traders will be focused on FOMC in the afternoon Wednesday.

Today's US Dollar Trading

• USD starts better in Asia, gives back gains in New York
• Some whipsaw seen on light stops and thin conditions
• Most eyes focused on FOMC tomorrow

Overnight Preview

• Look for continued sideways action
• Should get quiet ahead of FOMC tomorrow

Looking Ahead to Wednesday
All times EASTERN (-5 GMT)

• 10:30am USD Crude Oil Inventories
• 2:15pm USD FOMC Statement
• 2:15pm USD Federal Funds Rate
• Day 1 ALL WEF Annual Meetings

Forex Analysis by Jason Alan Jankovsky at ForexPros.com. For more details about Forex Trading and Tips for decent earnings through Forex Trading, Please check http://www.forexpros.com