Tensions and fears are still persisting in markets where investors are worried that global econmeis, led by the United States, may head to another recession or financial crisis, triggering demand on safe haven assets.

Still, the S&P cut to U.S. sovereign rating by one step to AA+, losing its top rating for the firs time since 1941, is having negative impact on markets before the Fed rate decision later in the day. 

Amid the sluggish growth and substantial debt, the Fed may be obliged to announce new measures to boost the fragile recovery. However, expectations refer to no change in monetary stance by the Fed on Tuesday meeting, which actually may lead to more fears that the agony in the U.S. economy will increase while the Fed is standing still.  

Thus, with the risk stemming from the world's largest economy, mounting debt woes in the euro area and sluggish growth in global major economies, refuges remain the most attractive to investors.

Gold rocketed to a new fresh high today touching $1779.45 an ounce, while the franc and yen remained the favorite despite their central banks interventions last week to halt their appreciation.   

Last week, the BoJ intervened through selling yen while the Swiss National Bank cut interest rate and pledged to take other measures to stop the franc's advance, yet both banks will face hard times as investors still believe that both currencies are favorable safe havens amid the undergoing tensions. 

Concerning the EUR/CHF pair, it slipped for the second day to trade around 1.0563, after recording a high of 1.0841 a low of 1.0478.

Moreover, the dollar slipped, ahead of the FOMC meeting, against a basket of major currencies where the dollar index plunged to a low of 74.32 compared with the day's starting level of 74.85.

Concerning the USD/JPY pair, it plunged for the third consecutive session, reversing almost last week's entire sharp rise when the BoJ intervened in FX market through selling yen, to trade at 77.04 after touching a high of 78.46 and a low of 77.85.

The trading range for today is among key support at 75.25 and key resistance at 79.55.

 Moving to the British pound versus the yen, it retreated on the daily basis to 125.98 after opening at 126.81 after the release of downbeat manufacturing and trade data which added to evidence the U.K. economy is showing a slowdown in the second quarter.

Today's reports showed that U.K. manufacturing production fell 0.4% in June compared with the prior 1.8% expansion, while visible trade deficit widened to 8873 million pounds in June from the revised deficit of 8467 million pounds.

So far, the pair has recorded a low of 125.37 while the highest level was depicted at 127.02, whereas the trading range for the day is among the major support at 122.00 and the major resistance at 128.50.