Federal Reserve minutes in focus

Risk appetite has returned to the markets following the US holiday on Monday and US equity markets closed at a new record high last night.

Risk appetite has returned to the markets following the US holiday on Monday and US equity markets closed at a new record high last night.

In addition, the price of oil moved higher on the heels of positive comments from the OPEC secretary supporting the Russian ruble and other oil linked currencies.

Tonight, we get the release of the Federal Reserve minutes from the meeting in February. The meeting itself was uneventful but we may obtain more details on the different opinions within the Fed through the minutes. The key focus will be on the timing for the next US rate hike and any signals on this will lead to USD volatility. However, with the Trump administration still to clearly outline their fiscal plans, the Fed is likely to be awaiting further details.

Wise Money eyes Germany as euro is losing grounds

Data from Germany will be eyed today with their Ifo expectations due out this morning. The number is expected to show a further fall in February. This could put more pressure on the euro which is losing ground against its major currency peers led by falling German yields. The movement in the bond market reflects future uncertainties politically and from the potential impact of the perceived Trump effect.

This morning, we are also expecting he second reading of UK GDP for the last quarter of 2016.

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