Developments in the Ukraine crisis remain the main market mover and it seemsno news is good news, giving way to a further rebound in risk assets. However, a reescalationcould turn around risk appetite fast.
Both Bank of England and the Fed release minutes. In the minutes from the Bank ofEngland meeting in July the market will focus on whether the committee votedunanimously. Speculations of a dissent in voting have especially been fuelled afterBoE governor Mark Carney on Sunday night said that the central bank could hikerates before wages increase.
Minutes from the latest Fed meeting could also prove interesting. It was themeeting where the Fed made a hawkish twist on inflation and lifted the end-2016projection from 2.25% to 2.5%. Also, comments after the meeting suggest that thecommittee turned more hawkish. Fed hawk Richard Fisher said in an interview thatthe reason he did not dissent was because he saw movement in the committee in hisdirection.
Read the full report: FX Daily