ECB policymakers see a June hike as very likely, Reuters reports citing sources; some advocated a move in April, could were ok with waiting until June.
The ECB's shift towards a likely hike in June, with discussions around April, reflects a hawkish pivot that markets may have underpriced.
Dallas Fed PCE Price Index (Mar): 2.9% Y/Y (prev. 2.0%)
EU Trade Commissioner Sefcovic says the bloc will stand its ground, following on from China threatening retaliatory measures over industrial policy plans.
ECB policymakers see a June hike as very likely, Reuters reports citing sources; some advocated a move in April, could were ok with waiting until June.
US NEC Director Hassett says creditors could provide more time, with respect to Spirit Airlines (FLYYQ)
Israeli Defence Minister says they may soon be asked to move again to ensure the achievement of goals in Iran, Al Hadath reports
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- 'Several' governors think that at least two hikes will be needed, unless the conflict ends and there is a marked drop in crude.
- The amount of tightening that will be necessary was among the discussed topics.
This indicates increasing concerns over inflation, with several governors advocating for at least two rate hikes unless geopolitical tensions diminish significantly. Traders should watch for impacts on the Euro and fixed income markets, as expectations evolve around the ECB's tightening path.
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