1 May 2014
US docket will set the tone in May day – Danske Bank
FXStreet (Edinburgh) - Allan von Mehren, Chief Analyst at Danske Bank, sees the US calendar as the main catalyst for today’s price action.
Key Quotes
“We see further improvement in ISM manufacturing for April as jobless claims and regional surveys point to a decent rebound in activity going into Q2. We look for an increase to 54.3 in April from 53.7 driven by a rise in new orders”.
“Before the ISM release Fed chairman Janet Yellen speaks at 14:30 CET. She is likely to reiterate the soft message from her recent speeches that there is plenty of slack in the labour market and that inflation is far from the Fed’s target”.
“US jobless claims are expected to decline slightly to 320k from 329k last week. This would leave the four-week average close to the seven-year low reached over the past weeks”.
“Fed’s preferred measure of inflation, core PCE, will be released for March. In line with consensus we look for a rise of 0.2% m/m. This still leaves the annual rate just above 1% and far from the Fed’s 2% target”.
Key Quotes
“We see further improvement in ISM manufacturing for April as jobless claims and regional surveys point to a decent rebound in activity going into Q2. We look for an increase to 54.3 in April from 53.7 driven by a rise in new orders”.
“Before the ISM release Fed chairman Janet Yellen speaks at 14:30 CET. She is likely to reiterate the soft message from her recent speeches that there is plenty of slack in the labour market and that inflation is far from the Fed’s target”.
“US jobless claims are expected to decline slightly to 320k from 329k last week. This would leave the four-week average close to the seven-year low reached over the past weeks”.
“Fed’s preferred measure of inflation, core PCE, will be released for March. In line with consensus we look for a rise of 0.2% m/m. This still leaves the annual rate just above 1% and far from the Fed’s 2% target”.