OECD Sees Bank of Japan Raising Interest Rates to 2% by 2027 
Bank of Korea Signals Potential Interest Rate Hikes as Inflation Remains Elevated 
RBA Raises Interest Rates to 4.35% Amid Rising Inflation Risks and Middle East Tensions 
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BOJ Governor Kazuo Ueda Hints at Rate Hike as Inflation Pressures Build 
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Today, Federal Reserve Open Market Committee (FOMC) will release minutes of its March meeting, which is the biggest event risks for Dollar based pairs. Today’s minutes is of particular interest to have a feel, which camp within FOMC gaining momentum.
- Key to watch out will be the sets of risks to U.S. economic outlook, other than strong USD.
- ‘Many’, ‘some’, these are the wording that will require close scrutiny to have a feel, how many policymakers are in which camp, dovish or hawkish.
- Outlook for hikes, as policymakers skipped March, any hints for what might occur in April.
Today’s minutes may prove positive for Dollar, since at one hand market has largely priced in the 50 basis points rate reduction in expectations in March meeting and Dollar is hovering around key support area.
Moreover it is likely to be mentioned that many members feel that another 25 basis points hike to be required over next few meetings.
Recent commentaries from several FOMC board members such as James Bullard, Charles Evans, Janet Yellen, suggested that FOMC is increasingly becoming hawkish and the committee has started looking like a dovish Chairperson with several hawkish members.
