US central bank statement on Wednesday to take the spotlight this week

Friday afternoon’s positive Market Manufacturing Purchasing Managers’ Index (PMI) data created a bullish movement for the US currency. However, this was short-lived thanks to a poor data release in the form of disappointing New Home Sales figures, which pulled rates back to the levels we saw for most of last week.

This week, we look forward to Core Durable Goods Orders data today, consumer confidence data on Tuesday, as well as growth and unemployment claims figures on Thursday. The main event, however, will be the Federal Open Market Committee (FOMC) statement on Wednesday evening. Investors will be studying the language used by the central bank for clues to future changes in monetary policy.