During today’s early trading session, Asian stocks traded higher as the Bank of Japan maintained its massive stimulus program, furthermore, positive Japanese data showing that yearly exports increased. Following the BoJ monthly report, the Yen rallied against the Dollar as officials stated that Japan’s economy is expected to “continue its moderate recovery trend”.

During the European session, the GBP/USD dropped to its lowest level since 2009 following mixed UK data. The Claimant Count Change showed that the number of unemployed people declined by 31,000, slightly better than the expected figure of -30,000.

During early U.S. trade, the Dollar is traded cautiously against the Euro as investors are currently listening closely to the FOMC statement, volatility is expected to pick up as officials discuss interest rate decisions and factors affecting the economic outlook. It is expected that a rate hike will take place mid-year as the U.S. economy continues to show improvement, this move could weekend the price of Gold as the commodity is considered bearish with raising interest rates.

 

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Here are 4 tips for today's trading. This will help you decide where you should invest and what to look for:

 

1. Fed in focus

All eyes are on the U.S. Federal Reserve as it ends its two-day policy meeting. The Fed is expected to leave monetary policy unchanged, but rates are widely forecast to go up this summer.

Investors are particularly interested in what chairwoman Janet Yellen will have to say at 2 p.m. ET about the timing of an interest rate rise.

"[This Fed] meeting announcement and press conference have the potential to reshape market expectations around the start and pace of Fed tightening," explained Maury Harris, an economist at UBS.

 

2. Politics setting the pace

The main Israeli stock market is edging up by about 0.5% after Prime Minister Benjamin Netanyahu declared victory for his Likud party following a tumultuous election. He'll now have to work on forming a coalition government with other parties.

Meanwhile, British investors are awaiting the latest U.K. budget, an annual event where the government outlines its plans for taxes and spending. Chancellor George Osborne's speech could set the tone for campaigning before the U.K. general election on May 7.

 

3. Mellow morning for stocks

Investors seem to be in a mellow mood Wednesday. U.S. stock futures are relatively stable. European markets are mixed in early trading. Asian markets also ended with mixed results.

 

4. Stock market movers -- Sony, BMW, Standard Chartered

Shares in Sony (SNE) jumped by 5.5% in Japan after the company announced final third quarter results showing sales and profits were better than preliminary figures reported in February.

Shares in British bank Standard Chartered (SCBFF) are rising by about 7% in London. Analysts have been raising their ratings on the stock, according to reports. Investors have become more optimistic about the struggling bank after it said it would install a new CEO, Bill Winters, who previously worked as the co-head of JP Morgan's (JPM) investment bank.

Shares in BMW (BAMXY) are declining by about 3% in Germany after the automaker posted higher annual sales and profits, but the growth wasn't enough to impress shareholders.

 

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What is it? It checks the change in the inflation-adjusted value of all goods and services produced by the economy.

It's the broadest measure of economic activity and the primary gauge of the economy's health.

When? March 18th at 5:45pm Eastern Time.

Trading Tip: If the actual number is higher than the forecast, you can expect the NZD to rise.

 

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What is it? It's among the primary methods the Fed uses to communicate with investors regarding monetary policy. It covers in detail the factors that affected the most recent interest rate and other policy decisions, along with commentary about economic conditions such as the future growth outlook and inflation. Most importantly, it provides clues regarding future monetary policy.

When? March 18th at 2:30pm Eastern Time.

Trading Tip: If the announcement will hint towards higher interest rates, you can expect the USD to rise.

 

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What is it? It checks the interest rate at which depository institutions lend balances held at the Federal Reserve to other depository institutions overnight.

Short term interest rates are the paramount factor in currency valuation - traders look at most other indicators merely to predict how rates will change in the future.

When? March 18th at 2:00pm Eastern Time.

Trading Tip: If the actual number is higher than the forecast, you can expect the USD to rise.

 

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What is it? It's the primary tool the FOMC uses to communicate with investors about monetary policy. It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes.

When? March 18th at 2:00pm Eastern Time.

Trading Tip: If the announcement will hint towards higher interest rates, you can expect the USD to rise.

 

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