FED is the flavour of the week

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This week will kick into motion come late Tuesday or Wednesday when the market prepares for a slew in GDP news from United Kingdom, US and Canada. Adding to the spice would be the Monetary Policy Statement by Bank of Japan on Thursday but the mother of all news would be the FOMC Statement.

Recent US economic performance is nothing to shout about so I do not expect a ground moving announcement but traders would be looking into clues from Yellen’s tone to prepare for next FOMC. Yellen informed that the FED is looking into increasing rates twice this year and usually mid year is a focal point where previous decisions are analyzed for the next move. Any hint of of a potential rate hike would see the USD rejecting the 94.00 support.