This week, several of the world's most important central banks announced their interest rate policy.  Yet, despite their different economic circumstances, they all decided to keep rates unchanged.

The US dollar has been rallying against the world’s most heavily traded currencies on speculation the United States Federal Reserve could open the door for a series of rate hikes in the months ahead.

The past two quarters have seen the economy pushed to the brink of a recession.

There are only a few event risks, most of which will probably be a non-event for the currency market.

After surprising the markets with hawkish comments on April 30, currency traders not only expect the Federal Reserve to pause on Wednesday, but to also raise interest rates before the end of the year.

The ISM Non-Manufacturing Composite is anticipated to have remained above the 50 Boom/Bust level for a second month at 51.0, but down from last month’s reading of 52.0.

The US dollar strengthened as hawkish comments from Federal Reserve Bank of Dallas President Richard Fisher spurred speculation that the Fed may consider rate hikes in the near future.

Falling oil prices helped raise the appeal of the US dollar despite a disappointing round of consumer confidence and housing data Tuesday.

The minutes from the Federal Open Market Committee's April 29-30 meeting supported market expectations that the central bank would leave rates steady at 2.00 percent when they meet again in June.

U.S retail sales are expected to have declined 0.2% in April as a housing slump and rising inflation have squeezed consumers wallets.