US: PMI, FOMC minutes and Capital Goods Orders - Danske Bank
|Analysts from Danske Bank expect the US PMI to fall back in May and they don’t consider that FOMC minutes will change market’s perception of the monetary policy stance.
Key Quotes:
“In the US, Markit PMI’s for May are due for release on Wednesday. The Empire regional manufacturing survey rose in May, indicating a faster pace of growth than in April. At a national level, however, we expect manufacturing PMI to fall this month from 56.5 down to 55.8, as we still believe we are beyond the peak, so manufacturing growth will be lower but still positive. We expect services PMI to come in at 55.0, up from 54.6.”
“On Friday, capital goods orders figures are due for release. Overall, business investments have been increasing since 2016 but the past couple of month’s numbers have moved sideways – probably due to lower growth in the manufacturing sector.”
“The coming week also brings FOMC meeting minutes on Wednesday. We do not expect much news, as the Fed is continuing its gradual hiking cycle with two to three additional rate increases this year. However, we intend to keep an eye on why the Fed removed its phrasing about ‘monitoring inflation closely’.”
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.