Equities continue to trade in a tight intraday range just below the day's highs. The dollar index (DXY 79.18 -0.90) has just dropped to a new low in recent trade, down ~1% and near a technical support zone.

Although the intraday action has been relatively subdued today, tomorrow's FOMC meeting and continued progress on the tax cut extensions will be of particular interest this week. The Senate is expected to vote on the Tax Bill this afternoon, and the bill is expected to pass there before heading to the House, where its fate is less certain in its current form.

The FOMC will meet tomorrow and release a policy statement around 18:15 GMT, which could add more volatility to the treasury market, which has seen a sharp rise in yields over the past few weeks.