FXstreet.com (C�rdoba) ? ?The only forward looking guidance is to reaffirm the recent FOMC statement and boilerplate language about being prepared to deploy its range of tools as appropriate,? said Marc Chandler, Global Head of Currency Strategy at Brown Brother Harriman.

According to Chandler the extension of the FOMC September meeting from one to two days, will likely fuel speculation that the Fed may seek a consensus on its action. ?At the same time Bernanke's speech devoted much time to urging Washington to put the US on a sustainable fiscal path, when the economy was stronger.?

The economic data and Obama speech in the coming weeks will provide an important backdrop for the FOMC meeting. ?If the FOMC does take new action next month, we suspect that the hawkish dissenters would find extending the maturities of its Treasury holdings may be among the least objectionable,? added Chandler.

He pointed out that self-fulfilling survey data and a convincing break of the 1.100 level in the S&P 500 index, ?would aggravate the pressure on the Fed to act.?