04:30 Japan Industrial Production (MoM) (finally) January +3.8% +2.0% +1.9%

04:30 Japan Industrial Production (YoY) (finally) January -4.3% -1.3%

05:00 Japan BoJ monthly economic report March

The dollar strengthened against most of its major counterparts after Federal Reserve policy makers raised their assessment of the U.S. economy and refrained from additional monetary easing. The Federal Open Market Committee kept the benchmark interest rate target unchanged yesterday at zero to 0.25 percent, where it’s been since December 2008. The central bank said it expects “moderate economic growth” and predicted the unemployment rate “will decline gradually.” In their last statement in January, policy makers said growth would be “modest” and unemployment “will decline only gradually.”

The yen slid to an 11-month low versus the greenback as the yield spread between two-year debt in the U.S. debt and Japan to widened to the most since July, making dollar-based assets more attractive. The yen also dropped as Asian stocks extended a global rally, damping demand for the lower-yielding currency. Japan posted a record 437.3 billion yen deficit in its January current account, the biggest shortfall since comparable data began in 1985, according to a report from the Ministry of Finance last week.

EUR/USD: during the Asian session the pair fell, updated a month's low.

GBP/USD: during the Asian session the pair decreased, receded from yesterday's high.

USD/JPY: during the Asian session the pair rose, updated year’s high.

On Wednesday EMU data at 1000GMT includes industrial output, which is expected to rise 0.6% m/m but fall by a reading of -1.1% y/y and also the final HICP data for February, which should come in at 2.7% y/y (0.5% m/m). UK labour market data is due at 0930GMT and is expected to show the rise in unemployment slowing with a claimant count of 5k and an unchanged unemployment rate. US data starts at 1100GMT with the weekly MBA mortgage applications data. At 1230GMT, US data includes the Current Account and Import/Export Price Index. The weekly EIA Crude Oil Stocks is due at 1430GMT.