Unless the statement offers fresh indications that the US Fed will continue its rate hikes going forward, the current rebound will come to an end sooner rather than later.

Most people in the market see the BOJ scrapping the quantitative easing policy at its board meeting on April 28 as a done deal.

As the expectation is growing that the US Fed may end the rate hike cycle as early as its March meeting, the dollar will become susceptible to any weak US data.

The dollar has rebounded a bit, but the momentum is not necessarily strong.

With the US new home sales proving to be a positive surprise, traders who are still holding short dollar positions are likely to continue adjusting their positions this week.

Yields rose to a level attractive for many investors and they should think about buying.

We believe that the US Fed will make its final rate hike in the current cycle at the Jan 31 FOMC meeting.