020 7898 0500The minutes from the FOMC meeting were released yesterday evening and showed that most officials are minded to increase interest rates soon. That points to a June rate hike, but beyond that nobody is quite sure. If the economy continues as it has been doing of late, then more hawkish policies can be expected.
Composite, manufacturing and services PMI all came in above expectations as a further reminder that the US economy is in rude health. They came in at 55.7, 56.6 and 55.7 respectively, against expectations of 55.0, 56.5 and 54.9. This no doubt helped the dollar, but inflation data from the UK and FOMC meeting minutes had the more profound effect.
Today is a more sedate affair, but we will see existing home sales for April and initial jobless claims up to 19 May. I’m not a betting man, but I predict further dollar strengthening throughout today and tomorrow is the UK and EU post further underwhelming economic data.
