While the USD appears to be trending downward these days, commentators note that the currency is actually traveling sideways, as market participants look for cues indirectly from economic data and directly from the Fed. Many pundits feel the economy is resting precariously on the back of the housing market, and are anxiously waiting for the data to provide guidance either way. Already, a spate of bad news surrounding one sector of the mortgage market coupled with disappointing data on new home sales are worrying investors. Ultimately, however, the USD will live or die by the Federal Reserve Bank’s reaction to this news. In fact, the Fed’s Open Market Committee is scheduled to meet today and tomorrow, during which point it is expected that interest rates will be held constant. The Wall Street Journal reports:

Analysts will also be watching for any changes to the Fed’s inflation outlook, particularly after Friday’s stronger-than-expected consumer-price report.

Read More: Dollar Treads Water, Waiting for the Fed