The FOMC released their highly anticipated minutes of last month’s meeting tonight, where market participants were hoping for clarification on the Fed’s outlook on a rate hike this year. Fed minutes were from the March 15-16 meeting, where the central bank left rates unchanged and lowered its forecast for rate hikes this year from four to two. Fed Chair Janet Yellen also addressed the market last week assuring markets the central bank would be cautious in raising rates. The Fed continued their dovish tone and alluded to no rate hikes before June this year. However they are still forecasting two rate rises by the end of the year.
The economic docket was relatively quiet yesterday with only two notable pieces of data released. Firstly retail PMI from the Eurozone posted a worse than expected 49.2, indicating contraction in the service sector. In the afternoon, the US released their Crude Oil inventories. Crude oil is trading below the key psychological $40 mark. The figure, forecast at 3.1M registered a reading of -4.9M, its second lowest number this year.
Another quiet day in relation to any data releases, but with the head of the ECB, Mario Draghi speaking in Europe around midday, there could be some volatility seen from his comments. Likewise, later this evening Fed Chair Janet Yellen will take center stage as she speaks at a panel discussion in New York.