SHANGHAI, Feb. 23 (SMM) – Attentions should be on US’s EIA and API crude oil inventory from the week ending February 17, Federal Reserve’s February meeting minutes and Fed officials’ speech on Thursday. US dollar index staged technical correction on Wednesday’s night trading but will stay firm with positive factors. Base metals will keep fluctuating. Eyes should be on tin, which is expected to drop continually.

Fed’s February monetary policy meeting minutes, released on Thursday morning, showed a hawkish signal as expected. Many meeting attendees pointed out that if labor market and inflation are flat at current level, or higher, it will increase risk of overheated economy. Then, a rate hike will come soon. Some attendees said it is appropriate to raise rate. Hence, Fed is expected to raise rate on March’s meeting.

According to February meeting minutes and latest economic data, US’s labor market and inflation already met their target. US will release initial jobless claim from the week ending February 17, which will verify a prudent recovery in labor market further. However, Federal Reserve Bank of Minneapolis Chairman, having different opinions, pointed out on February 21 that US’s labor market will improve further and don’t think Fed should raise rate quickly to counteract inflation.

US’s API crude oil inventory released on Thursday morning dropped sharply from the week ending February 17, which was higher than expected. This was due largely to falling imports and falling inventory of gasoline and refined oil. Besides, according to API crude oil inventory, US’s oil producers cut 482,000 bbls per day last week. COMEX 1704 oil thus rallied rapidly.