U.S. key data coming up - TDS

Analysts at TD Securities explained that the main US data release this week is CPI on Tuesday and on Wednesday the minutes of the April FOMC meeting are released.

Key Quotes:

"We expect higher gasoline prices to push headline CPI up to 0.3% M/M, the same as consensus. This would be the fastest monthly pace since May last year, bringing to an end a prolonged period of soft headline inflation performance. Core inflation, however, should remain subdued following the weak performance in March; we expect 0.1% M/M (consensus: 0.2%).

"Even though that meeting was devoid of any fireworks, the minutes of the meeting will provide some crucial direction to the markets on the Fed’s assessment on the outlook for growth and inflation, as well as the prospects for a near term hike. TD expects the tone of this report to be dovish, reflecting the continued uncertainty about the outlook and the cautious approach to policy normalization."