The path of U.S. monetary policy may be shaped as much by what happens in Frankfurt and Tokyo over the next seven days as it is in Washington.

With the European Central Bank meeting today and the Bank of Japan on March 15, Federal Reserve Chair Janet Yellen and her colleagues will be closely watching what their foreign counterparts do — and how the currency and other financial markets react — in mapping out interest-rate increases for the U.S.

"If the ECB does more easing — as we expect them to do — then the Fed will worry mainly about what that does to the dollar," said Torsten Slok, chief international economist at Deutsche Bank AG in New York.

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