All eyes on Fed's take on oil, forex market upheavals

LAST week, US stocks rallied and European benchmarks hit all-time highs as traders applauded the European Central Bank's (ECB) quantitative easing (QE) programme.

The broad indexes are likely to test record highs this week if the US Federal Reserve can reassure investors in its Wednesday statement that the upheaval in oil and currency markets has not upended its policy plans.

In the wake of the ECB's launch of a more than one trillion euro (S$1.5 trillion) bond purchasing plan, the euro fell to 1.11 against the US dollar, the closest it has come to parity since 2003 - early in its existence.

Oil prices lingered around US$45 a barrel as Saudi officials warned that the …