Interest rates are in the spotlight this week: the Federal Reserve is expected to stay put on Wednesday. The Bank of Japan decides Friday.

• The USDJPY pair is sitting tight above ¥147.50 as both sides are gearing up to reveal the latest on the interest-rate front. The Federal Reserve in the US and the Bank of Japan, in Japan obvs, have their central bank gatherings this week and things are looking spicy and dicey.

• On Wednesday, the US central bank holds its regular monetary policy update. Fed chief Jay Powell will appear for a press conference. He is widely expected to skip a rate hike and announce that the Fed is closely monitoring incoming economic data and will do whatever it takes to keep inflation down.

• The Bank of Japan updates on Friday and the general consensus is for no surprises. Another wait-and-see approach is what analysts are calling for, even at the risk of further yen depreciation. Still, Bank of Japan governor Kazuo Ueda has signaled policymakers may put an end to negative interest rates by the end of the year.