It's clear that the market is becoming more aggressive for an end to Japan's 'quantitative easing'.
The Fed may become less comfortable offering guidance on the direction of interest rates. The market is going to watch to see if they remove 'measured.
There are expectations for quantitative easing to end in April - that's our forecast too - but it will probably take several months (after that) before they begin tightening interest rates.
A lot of this comes on the back of year-end profit taking on what has been a successful position for the market.
We're seeing a weaker dollar mainly because of position covering.
You still have the potential for aggressive hikes by the Bank of Canada and you still have support from commodities prices.
There has been a clear shift in ECB rhetoric and gears are shifting in favor of tighter policy.
This is a bit of consolidation ahead of the major data that we get tomorrow. The forecast for the data is relatively optimistic, although that optimistic outlook does not seem to be played out in the markets.
We're already seeing light liquidity, and the data wasn't much of a focus.