Markets were cautious overnight, as they braced for the Fed's monetary policy and digested fresh warnings regarding the Omicron variant and poor data from China.
World Health Organization (WHO) Director-General, Dr Tedros Adhanom Ghebreyesus, said yesterday that "Omicron is spreading at a rate we have not seen with any previous variant. I need to be very clear: vaccines alone will not get any country out of this crisis" and noted that 77 countries have reported cases of the new variant. 
The US Centers for Disease Control (CDC) estimated that the Omicron variant now represents about 3% of U.S. COVID19 cases.
China's Industrial Production grew 3.8% y/y vs 3.0% expected, 3.5% prior, while Retail Sales rose 3.9% y/y vs 3.5% expected, 4.9% prior.
Over in the US, the House of Representatives passed the debt ceiling increase to avoid default, with the bill having been sent to US President Biden's desk for his signature.
UK's CPI Inflation surged 5.1% y/y in November, compared to 4.2% y/y prior, ahead of Thursday's monetary policy decision by the Bank of England.
Main Asia-Pacific stock markets were mostly downbeat and European futures are cautious.
The US Dollar and the JPY Index are tepid, while the Australian Dollar advances against both.
EUR/USD finds support above 1.1250, following its two-day decline.
GBP/USD is upbeat, probing 1.3250.
USD/JPY consolidates above 113.50, after its solid start to the week.
USD/CAD is mixed around 1.2850, but clinches new 3-month highs.
AUD/USD rebounds, trading above 0.7100.
NZD/USD is mixed, as it covers losses, following the new 2021 lows during the Asia-Pacific session (0.6725).
GER30 breaks below 15,500.
US30 is pressured and threatens 35,500.
USOIL enters its third negative day, giving 70.00 up.
XAU/USD is tepid, breaching 1,770.
Economic Calendar Picks (GMT)
The US Federal Reserve dominates today eventful calendar, as it hands down its monetary policy decision and releases updated staff projections (19:00), while Mr Powell's presser follows at 19:30.
Earlier, investors will be looking to US Retail Sales and CPI Inflation from Canada (13:30).
New Zealand Q3 GDP is due at 21:45, RBA's governor Lowe is on tap at 23:30 and Australia's Employment report is released at 00:30 (Thursday).
See the economic calendar here.
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
Retrieved 23 Jun 2022 https://twitter.com/DrTedros/status/1470836835647725581