Chicago Fed president Evans speaking in Hong Kong

  • too early to tell if inflation rebound is sustained
  • Fed rate path will depend on economic data
  • shallow path of rate hikes is appropriate
  • sees downside risks to his economic forecast

"A very shallow funds rate path, such as the one envisioned by the median FOMC participant is appropriate"

Evans repeating his stance here and remaining cautious but he doesn't vote this year. In March the FOMC's median forecast called for two rate hikes in 2016.

EURUSD and GBPUSD currently on session lows of 1.1381 and 1.4241. USDJPY 110.85.

Note barrier option defence expected ahead of 110.50.