Markets continue to digest Fed minutes

Yesterday’s markets

24th February 2017

  • USD - Unemployment Claims: 244K
  • USD - Crude Oil Inventories: 0.6M
  • AUD - RBA Gov Lowe Speaks 

Markets continued to digest last night’s Federal Reserve minutes. The Fed’s tone was relatively hawkish as many officials expressed confidence that they can raise interest rates gradually, while a hike “fairly soon” might be appropriate in order to avoid overheating the economy. However, the minutes did not contain enough clear direction to cause a major market move and price action yesterday reflected that fact.

In politics, US President Donald Trump’s immigration policy update has been delayed. Trump yesterday postponed the issuance of a new version of his immigration restriction order until next week. Homeland Security Secretary John Kelly has called the new order a “more streamlined version” of the original travel ban, which sparked mass protests earlier this month.

Today’s markets

23rd February 2017

  • CAD - CPI m/m
  • USD - New Home Sales
  • USD - Revised UoM Consumer Sentiment 

The week finishes on a quieter note, with the only real data of note being US New Home Sales and the University of Consumer Sentiment. Both pieces of data are expected to improve on last month’s readings, with New Home Sales forecast at 575k and the University of Consumer Sentiment expected at 96.1.