Themes

• General mood is “risk off”
• Fed’s Meister: Would support a rate hike in March if economy remains on track
• Fed’s Powell: “This year I expect the Fed will raise rates, end asset purchases and perhaps later this year, permit the balance sheet to shrink.”

What’s Moving

In the wake is recent hawkish comments from Fed members, including Meister overnight, comments last night from Fed’s Powell, which seemed to be less hawkish than the others saw the Dollar receive an offer overnight.

Best gains overnight were seen in the Canadian Dollar, which gained on firmer oil prices.

Thoughts

We are expecting a fairly quiet session today, with markets expected to consolidate overnight moves in Asia today ahead of fresh offshore incentives.

The local data calendar is also light, with little slated for release other than Chinese C.P.I. and P.P.I. numbers. Neither of which are expected to be market movers today.

Pivot Points