Markets trade mixed ahead of Fed decision Wednesday

Global financial markets are displaying mixed sentiment as traders position cautiously ahead of Wednesday's Federal Reserve interest rate decision. The uncertainty surrounding the Fed's policy path has created a wait-and-see approach across major currency pairs, with forex markets showing limited directional conviction. Corporate earnings reports are adding another layer of complexity to market dynamics, influencing risk sentiment and currency flows. Traders are particularly focused on upcoming economic data releases that could shape central bank decisions and currency valuations. The cautious tone reflects broader market concerns about monetary policy divergence among major central banks. With the Fed decision looming, volatility remains subdued but could spike following the announcement. Market participants are closely monitoring any signals about future rate trajectories, which could significantly impact dollar pairs and cross-currency positioning in the near term.