Yellen's coming speech a bigger focus for markets than Fed minutes

Minutes from the Fed's last meeting should sound dovish when they are released Wednesday, but markets are already looking ahead to a speech Friday from the central bank's chair, Janet Yellen, for possible new clues on when it could hike rates.

The Fed gave a nod to weather-related weakness in the first quarter after its April meeting, but that statement was also released before a whole batch of disappointing reports including April's retail sales.

LPL Financial economist and strategist John Canally said the key to the central bank minutes, when they are released at 2 p.m. ET, will be what they say about the nature of the first quarter's softness.

"Everybody just thinks the minutes are going to be dovish. The minutes always turn out to be hawkish, and then we'll see what Yellen has to say to right the ship," Canally said. "The minutes are a month old and the Fed has a whole month more of data to show the economic weakness was transitory."

Yellen is scheduled to speak Friday at the Greater Providence Chamber of Commerce Economic Outlook Luncheon at 1 p.m. She is not expected to take questions.

"They are desperate to raise rates this year. I think she'll harp on the usual stuff that (the Fed) is data dependent," said Canally.