Anticipation of the upcoming FOMC rate decision at 18:15 GMT kept most of the majors in very tight trading ranges throughout the Asian and European sessions.

A very quiet night of trade in the currency market as a combination of a nearly empty economic calendar and the anticipation of the upcoming FOMC rate decision kept most of the majors in very tight trading ranges throughout the Asian and European sessions.

Currency strategist Boris Schlossberg analyzes the major currencies for the week of August 6.

Currency markets continued to be skittish at the start of the week, as fears of more turbulence in global equity markets kept the low yielders well bid.

The yen lost some ground as mild risk appetite returned to the markets after global equity indices stabilized.

The yen was the primary beneficiary of risk aversion today, as carry trade continued to be liquidated across the board.

Both the euro and the yen bounced within 40-60 point ranges for most of the Asian and early European sessions but found little directional bias ultimately settling near the 1.3700 and 119.00 levels respectively.

The EUR/USD bounced back as the week began driven higher primarily by the rebound in EUR/JPY which rose nearly 200 points off the session lows as risk appetite and demand for carry trades returned across the board.

Currency strategist Boris Schlossberg analyzes the major currencies for the week of July 30.

The EUR/USD was pressured throughout the night as further carry trade unwinds in EUR/JPY triggered stops first at 1.3675 and then at the 1.3650 level in the pair.