SEB Bank analysts points out that the US Fed will present its first updated forecasts after its U-turn in Jan on Wednesday and will be a key event for markets this week.

“We expect relatively small changes to its economic forecasts but “dot plots” to shift from two hikes in 2019 to unchanged rates. Given the dovish market pricing (5bps rate cut by end-19), this should have limited impact on markets and we see risks to US rates being biased somewhat on the upside. In light of our expectations of an improving outlook we stick to our forecast that the Fed will deliver a final rate hike in June.”