Over the past year, British pound strength has dominated the FX markets as the currency has gone on to breach 26-year highs above 2.01 back in April.

The greenback picked up strength throughout the New York morning, but mild price action has left the currency relatively unchanged from yesterday ahead of this week's marquee event: the FOMC decision on Thursday.

Retail sales growth in Canada is anticipated to slow during the month of April, with the headline reading estimated to rise only 1.0 percent after surging 1.9 percent during the month prior.

After a unanimous vote for a 25 basis point hike in May to 5.50 percent and even some discussion of a 50 basis point hike, outlooks on the Bank of England’s next move have been broadly mixed.

The US housing sector – the Achilles’ heel of the economy - continues to be a much-discussed issue by Fed members as it has the potential to prolong the recent slowdown in expansion.

The prospects of a rate hike to 4.50 percent by the Bank of Canada in July has drawn quite a bit of attention by the markets after the central bank’s core CPI measure surged to a four-year high of 2.5 percent in April.

US dollar and Treasury yield gains have slowed quite a bit now that weaker-than-expected core CPI figures have hit the markets, as there is far less support for the Federal Reserve’s overtly hawkish stance.

Terri Belkas previews U.S.inflation numbers.

Japanese bond and FX markets have grinded to a halt ahead of the Bank of Japan’s next rate decision, as the event has the potential to trigger the much fear carry trade unwind.

Terri Belkas previews tomorrow's Retail Sales economic news annoucement.