U.S. durable goods orders, new home sales, and the Department of Energy's weekly oil inventories are the highlights of the early morning's events, but all data of the day will be eclipsed by the FOMC's rate decision at 2:15 p.m. EDT.

Kicking off the day, at 7 a.m. EDT, the U.S. Mortgage Bankers Association will release mortgage applications for the week ending June 20. In the previous week, applications declined by 8.8% week-over-week.

At 8:30 a.m. EDT, markets will receive U.S. durable goods orders for May. Headline orders are expected to remain flat following a 0.5% decline in the previous month. Durable goods excluding transportation is expected to pull back 1.0% after declining 2.5% in April. Non-defense capital goods excluding aircraft is expected to fall 1.4% month-over-month after rising 4.0% in April.

At 9:30 a.m. EDT, the U.S. Energy Information Administration will release its energy forecasts for 2008.

At 10 a.m. EDT, the U.S. Census Bureau will release new home sales for May, which economists expected to total 512k compared to 526k in the previous month. The result would translate to a 2.7% month-over-month decline, after sales rose 3.3% in April.

At 10:30 a.m. EDT, the Bank of Canada will sell C$5.3 billion 2008.10.02, C$2.1 billion 2008.12.11 and C$2.1 billion in 2009.06.11 bills.

At 10:35 a.m. EDT, the U.S. Department of Energy will release oil inventories for the week ending June 20. Economists are expecting an 1100k draw in crude oil reserves following the previous 1242k decline. Gasoline inventories are expected to come in flat following the previous 1178k fall. Distillate inventories are expected to rise 2000k after rising 2617k in the previous week. Refinery utilization is expected to increase 0.25% after expanding 0.69% in the previous week.

At 11 a.m. EDT Bundesbank President Axel Weber will speak on financial markets and monetary policy at the University of Konstanz.

At 11:15 the Bank of Canada will buy back C$1.0 billion in various securities.

At 2 p.m. EDT, Undersecretary for International Affairs David H. McCormick will deliver remarks on 'International Economic Policy in a Globalized World' at the 'Center for Strategic and International Studies' in Washington, D.C.

At 2:15 p.m. the FOMC will announce interest rates. Markets are expecting no change to the current 2.00% target for the Fed Funds rate.

7:00 US MBA Mortgage Applications W/E 20-June Prior: -8.8%

8:30 US Durable Goods Orders May Exp: 0.0% Prior: -0.5%

8:30 US Durables Ex Transportation May Exp: -1.0% Prior: +2.5%

10:00 US New Home Sales May Exp: +512K Prior: +526K

10:00 US New Home Sales (M/M) May Exp: -2.7% Prior: +3.3%

10:30 CA BOC Conducts Regular Treasury Bill Auction

10:30 US DOE U.S. Crude Oil Inventories W/E 20-June Exp: -1100K Prior: -1242K

10:30 US DOE U.S. Gasoline Inventories W/E 20-Jun Exp: 0K Prior: -1178K

10:30 US DOE U.S. Distillate Inventory W/E 20-Jun Exp: 2000K Prior: +2617K

10:30 US DOE U.S. Refinery Utilization W/E 20-Jun Exp: +0.25% Prior: +0.69%

11:00 EU ECB'S Weber speaks at conference in Konstanz, Germany

11:15 CA BOC to Conduct Bond Repurchase Operation

14:15 US FOMC Rate Decision Exp: +2.00% Prior: +2.00%

By Erik Kevin Franco and edited by Cristina Markham