The Federal Open Market Committee (FOMC) will release their policy update at 19:00 (BST) this evening. It is expected that Chair Janet Yellen will announce that they will taper the amount of monthly asset purchases by a further $10 billion. The asset purchases are split between Treasuries and Mortgage Backed Securities (MBS).
Since the tapering begun under previous Chairman Bernanke, the FOMC has voted unanimously each month to reduce the purchases by $10bn; any deviation from this is likely to increase the volatility in the markets. The pace of tapering has been steady, as the Fed attempts to wean the US economy off of the stimulus, without hurting to the economy.
The accompanying statement should be closely watched for a change in sentiment towards the recent improvements in data.
ADP Employment and US GDP
The US ADP employment change release for April (13:15 BST) is estimated 210K which should be closely watched with a reasonable indication for Fridays Non-Farm Payroll release.
The US GDP Q1 will be released at 13:30 BST and is likely to be a disappointing figure, estimated at 1.1%; with the weather likely to have been a significant contributor to this release.