Euro Steady As Fed Meeting Comes To A Close

The euro lost more ground on Wednesday morning with the US Federal Reserve's policy meeting set to finish later in the day.

The common currency traded at $1.3545 at 5:30 GMT as speculation about the bank's next moves grew.

The US central bank is widely expected to stay the course with its tapering plan and reduce its monthly asset purchases by $10 billion. However, the focus will be on the rhetoric following the meeting as investors look for clues about the bank's time line for raising interest rates.

Also important will be the Fed's revised forecasts for several economic indicators including unemployment and inflation. The predictions will likely help determine how quickly the bank thinks the US will be able to withstand a rate hike.

After the nation's disappointing first quarter was attributed to unusually harsh winter weather, many are expecting to see strong growth in the coming quarters.

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With the European Central Bank moving in the opposite direction with its decision to ease further at July's policy meeting, the common currency has been under a lot of pressure and is likely to fall lower at the conclusion of the Fed's meeting.

The bloc's economy has been struggling with a patchy recovery and dangerously low inflation for the better part of 2014. Many are beginning to doubt that the region has turned itself around and worry that the region's recession may not be over.

Bloomberg reported that the Euro Area Business Cycle Dating Committee released a report saying that the bloc could be in what they call a “recession pause," meaning the three year recession suffered by the eurozone may not be over yet.

The report outlines the importance of sustained growth and took into account the bloc's declining economic indicators and weakening job market.