US: Markets scrutinising economic releases to assess the strength of the economy – Danske Bank

Research Team at Danske Bank, suggests that the financial markets are closely scrutinising US economic releases to assess the strength of the US economy after being caught on the wrong foot with regard to the next Fed hike.

Key Quotes

“Today, we are due to get two important indicators: (i) the Conference Board consumer confidence for May, which could reveal whether the US growth is driven by private consumption as many expect and (ii) PCE inflation figures for April on Tuesday. Headline PCE is the Fed's preferred price indicator and we expect headline inflation to be 1.1% y/y, driven mainly by higher gasoline prices, while the core index should increase 0.1% m/m (but it is a close call between 0.1% and 0.2%) implying a core inflation rate of 1.5% y/y (1.6% y/y).”