According to analysts at Danske Bank, following ECB President Mario Draghi's hint at future easing yesterday, it is today the Fed's turn to turn more dovish.

“At the FOMC meeting tonight we look for the Fed to open the door for a rate cut in July and a total of 75bp cuts in H2. Lower inflation expectations, trade war uncertainty and signs of a manufacturing recession point to the need for a lower Fed funds rate. Comparing the current Fed funds rate with measures of the neutral rate also suggests that monetary policy is not too tight. The Fed meeting will include new projections (dot plot). On the data front we get UK inflation data where consensus looks for a further decline in the core inflation rate to 1.7% y/y in May from 1.8% y/y in April. Core inflation has been trending lower since the peak at 2.7% in early 2018.”