Economic calendar: Will FOMC minutes surprise markets?

Summary:

  • Federal Reserve to publish minutes today

  • Oil may become more active in the evening as API will release stockpile estimates

  • Martin Floden, Deputy Governor of Riksbank, to speak later this morning

Trading on Wednesday may turn to be quite calm in the first part of the day as no major macroeconomic releases are scheduled. Situation may change in the evening as two readings with potential to move the market are scheduled. Firstly, the Federal Reserve will release minutes from its latest monetary policy meeting at 7:00 pm GMT. During the meeting central bankers said that the time has come for patience suggesting that the US tightening process will pause for some time. Having said that, investors will analyze the document carefully to see what was the underlying cause for this decisive shift. Apart from that, focus will be on Fed’s balance sheet as it still holds around $4 trillion worth of bonds. Any guidance on how fast and when could the Federal Reserve trim its books may meet with a significant market reaction depending on message. One should expect elevated volatility on the USD tied FX pairs in the evening. Additionally, one should keep in mind that the European Central Bank will release its minutes tomorrow. Last but not least, the American Petroleum Institute is set to release its estimates on crude oil stockpiles (9:40 pm GMT). The latest reading showed a drop of a million barrels but it barely moved the market at that time.

Central bank speakers scheduled for today:

  • 11:00 am GMT - Riksbank’s Floden

  • 6:10 pm GMT - Fed’s Kaplan

Major US companies reporting earnings today:

  • Bluebird Bio (BLUE.US)

  • CVS Health Corp (CVS.US)

  • Southern Company (SO.US)

The past week was better than good for Brent (OIL). Crude benchmark managed to break above the resistance zone and deliver a significant push higher. Price action eased a notch below the $67 handle this week. Source: xStation5

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