Analysts at ANZ explained that this week the data calendar is relatively light, with the key releases being the PMIs of Europe and Japan, although politics dominate.
Key Quotes:
"In recent months both these regions have been experiencing above-trend industrial momentum. In addition, ‘Fed speak’ and the minutes of the FOMC May meeting could take on added significance as financial markets tussle with the implications of the turmoil besetting the Trump administration."
"Although the statement that accompanied that meeting was upbeat and regarded the weakness in Q1 GDP as transitory, it will be interesting to see the range of debate within the FOMC and whether any members made any explicit reference to a June hike. With regard to the FOMC speakers this week, we think it unlikely any will get drawn into the political fog, and most will stay focused on the economy which is showing evidence of re- accelerating in Q2."
"In the coming weeks the political dynamic and its impact on overall financial conditions will be worth watching closely. If the politics were to take a nasty turn for the worse and have a sustained negative impact on financial markets, then this could make the FOMC’s decision at the 13-14 June meeting less straightforward."
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