Focus on Fed meeting as US rates near 0%

In the US, the spotlight will be on the Federal Open Market Committee (FOMC) meeting, which is scheduled for Wednesday. Particular attention will be given to the accompanying statement, since interest rates are well grounded near zero per cent.

In terms of data, the Producer Price Index (PPI) is expected to have declined to 0.3% during February whereas the Consumer Price Index (CPI) is expected to have remained unchanged.

The release of the housing starts, MBA mortgage applications and building permits should confirm yet again the weak state of the US housing market.

The ABC consumer confidence and the industrial production will wrap up this week's US data release.

On the British economic front, the release of the Bank of England committee minutes will take centre stage, as markets eagerly await the details behind the decision to enact the quantitative easing process.

Unemployment rate figures will be released midway through the week. The rate is expected to have risen to 6.5% during January.

The CBI March Industrial Trends, a measure of retail sales, will close this week's UK data release.

A few, albeit important, economic statistics are also scheduled to be released in Europe. The main focus will be on the eurozone CPI for February which is envisaged to decline to 0.4%.

Meanwhile, a survey of economic sentiment, the ZEW survey, will provide markets with a wide view of the business mood within Europe.

The release of the industrial production and construction output for January will provide an indication of business activity within the eurozone.

Finally, the eurozone trade balance figures will close this week's data release from the European mainland.

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