Greek Backstop

The fed funds target rate at a range of 0 to 0.25%, the Fed will likely talk about an exit strategy amid a US improving economic outlook but unlikely to change its language. If the central bank removes the “exceptionally low” for an “extended period,” the dollar will rally with declines in equity and bond prices. US stocks recovered earlier losses and the S&P 500 rose 0.52 to 1,150.51. Risks increased after a rhetoric escalation between China and the US. Chinese Premier Wen Jiabao, rebuffing calls for a yuan appreciation, reiterated that China will keep the yuan “basically stable” and maintain a moderately loose monetary policy and expansionary fiscal stance. The yen rose ahead of Tuesday’s Bank of Japan policy meeting on worries that the issue of the yuan appreciation could lead to increasing protectionism