Markets have refocused on Fundamentals yet are keeping one eye on the political risks. With US President Donald Trump - the lone source of Market volatility - now traveling in the world’s most unstable region, even the most bullish investor is skittish.

On Wednesday (23 May), the FOMC meeting minutes will be released. The primary takeaway is that most members view the slowdown in 1Q as transitory. Members should point to the weak inflation reads as one-off factors and indicate that the strong labour market, including an upwards trend in wages, will pressure prices. In regards to the path of normalisation, we suspect this will remain unchanged with two rate hikes in 2017. While expectations for a June hike sagged slightly after the recent US political noise, we still anticipate a 25bp hike in June (another in September). Fully pricing in of June should see mild USD demand.