Today, it’s all about the Fed. Existing homes sales for July will be interesting but another sideshow. The Fed is expected to be upbeat about the economy and confirm tapering is imminent but that’s about it. Which leaves the possibility of surprises. The Fed could indicate they are more inclined to tapering in September despite the mixed data of late and that unemployment is not approaching the necessary threshold. That would send the dollar higher. They could have talked about a change to the threshold for unemployment falling so as to push the tapering further out. That would send the dollar lower. They could also have discussed by how much to taper when they do, and that could be higher or lower than the current consensus of a cut ofUSD15 billion from the monthly USD85 billion in bond purchases. Today's trading will be telling.