Fed member Lockhart and Evans speech eyed – RBS

FXStreet (Barcelona) - FX Trading Strategists at RBS note that post the FOMC, the speech of Lockhart and Evans will be eyed closely for any reference to the mid-year rate hike.

Key Quotes

“Two FOMC speakers, and voters, are due to speak on monetary policy as well. Atlanta Fed’s Lockhart (moderate dove, 2015 voter) and Evans (very dovish, 2015 voter) are the first FOMC members scheduled to give public comments after the sharp market reaction to the FOMC’s March decision.“

“We see Lockhart, who is closer to the “middleground” FOMC member, as a notable FOMC speaker to watch for signs of a broader shift in FOMC sentiment. Lockhart has consistently signaled confidence with a rate hike at mid- 2015 or later – Lockhart showing lower confidence in a mid-2015 may be a sign that the middleground is less confident in the chances of a June rate hike, even though the Fed did not categorically rule out a June hike at yesterday’s meeting.”

“Meanwhile, Chicago Fed’s Evans has been consistently one of the Fed’s most dovish voices and will likely maintain a dovish tone in his commentary.”