With the probability of a Fed hike in March currently standing at 83.1%, according to CME’s FedWatch Tool, investors may closely scrutinize the minutes for fresh insights on rate hike timings beyond Q1.
Gold has extended its losses from Friday after trading flat on Monday. The precious metal was trading around $1,337 at the time of this writing, so it was off nearly $25 or 1.8% from the high of $1,361 reached on Friday.
Asian equity markets continued to build on last week’s gains, after U.S. stocks capped their best week since 2013. Investor sentiment has gradually improved after fears of rising inflation sent most global indices into correction territory.
The biggest single event of the week is the release of U.S Consumer Price Index data at 7:30 am CT Wednesday. The Core CPI read, which excludes food and energy, may not be known as the Federal Reserve’s preferred inflation gauge but it is arguably the most important. December’s read in January was a bright spot with a month over month increase of 0.3%.