Today its all about the Fed and what traders have interpreted to be the next rate hike. The 2-day meeting that started yesterday will reach its conculsion later today and there will be communication of the latest monetary policy outlook and decisions.

The Fed Chair will hold a press conference to communicate that, but prior to that there will also be the release of the Economic Projections. The US Dollar has been in appreciation since early February with the US Dollar index rising from 99.23 to a recent 102.25 last week.

This morning the USD is seen pulling back slightly ahead of the eveny that is scheduled at around 1900 CET this evening. Expectations are pointing towards a rate hike. Expecting volatility and awaitance of direction ahead of the actual communication.

USDJPY is virtually flat at 114.80, the currency pair is very much associated with interest rate differentials behind the two currencies and has been having a hard time taking on the 115 level in a decisive fashion.

Yesterday UK PM May got the green light to start the process for leaving the European Union, the GBP sold off with the GBPUSD slipping to lows of 1.2109 after opening at least a 100 pips higher.

Ahead of the Fed communication however we have UK labour data, and EZ employment figures during the morning session and in the afternoon CPI, Retail Sales and Empire State Survey all from the US.