Today’s Fedspeak could give clues on the timing of rate hike – Danske Bank

FXStreet (Edinburgh) - Market participants will closely watch the upcoming speeches by Fed members today, with the first rate hike by the Fed in the limelight, suggested Sverre Holbek, Senior Analyst at Danske Bank.

Key Quotes

“There are several potentially interesting Fed speakers today”.

“First, vice-chairman Bill Dudley (dove, voter) and Loretta Mester (hawk, non-voter) are participating at a conference discussing a new report called "new neutral", presented by various US banks in cooperation with several academics”.

“This could give more insight into whether Dudley, who is at the core of the Fed, still believes lift-off in June is plausible”.

“The other vice-chairman, Stanley Fischer (neutral, voter) is participating tonight in a panel discussion on central banks with large balance sheets, a conference in which ECB vice chairman Vitor Constancio also participates”.

EUR/USD upside capped at 1.1260, bearish trend remains – FXStreet

FXStreet Editor and Analyst, Matias Salord, views EUR/USD might extend is decline towards 1.1180 if the support at 1.1200 breaks, but also warns of surprise price actions due to monthly end flows.
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CPI data pushes policy divergence in favour of USD – BTMU

Derek Halpenny, European Head of GMR at Bank of Tokyo-Mitsubishi UFJ, explains that US CPI might have fell into negative territory but services inflation for which wages is a key component climbed to 2.5%, which only favours the dollar-boosting policy divergence.
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