US: GDP, trade data and FOMC Minutes in focus this week - BBH
|The analysts at BBH points out that there are three US economic data points in the week ahead and first amongst them is the estimate for Q1 GDP, which is expected to be revised up, perhaps to almost 1.0% from 0.7%.
Key Quotes
“It will not change the disappointment, but we note that during this expansion growth in the January-March period has averaged 1.1% annualized. Second, details about April merchandise trade, inventories, and durable goods orders will help shape expectations for Q2 GDP. The New York Fed GDP tracker rose 0.4 percentage points to 2.3%. As of May 16, the Atlanta Fed's GDPNow was tracking 4.1% for Q2 up from 3.6% on May 12.”
“Third, the minutes from the FOMC meeting earlier this month will be released. The meeting itself was a non-event. The FOMC statement was little changed but clearly looked through the recent soft economic data. The minutes are not some objective recording of what was said. They must be understood as a communication tool. However, the market understands the message that the FOMC sees its objectives sufficiently close to allow it to continue to normalize monetary policy, and soon to reduce the balance sheet. While anything the Fed reveals about the evolution of its thinking on its balance sheet strategy will be scrutinized by market participants, its deliberative style and the apparent lack of urgency suggests little fresh information is likely yet.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.