US: Manufacturing and Fed speak in focus - TDS

According to analysts at TD Securities, the Philly Fed manufacturing report for July is expected by markets to show a modest rebound to 5.0 following the sharp 16 point decline to 0.3 in June.

Key Quotes

“The improvement is likely to reflect some easing on trade worries that affected manufacturing sentiment in June (US-Mexico standoff and fallout in US-China talks pre-G20) and would also be in line with the NY Empire report published earlier in the week.”

“NY Fed President Williams will give a keynote address on monetary policy at 2:15pm ET. We look for his remarks to further solidify the case for a 25bp cut at the July FOMC meeting — in line with our view. Recall that Williams recently acknowledged that arguments for monetary policy easing have strengthened.”