The minutes of the most recent FOMC meeting released yesterday largely reflected the official statement from April 29. Much like the BoC, which remains uncertain about the impact recent shocks will have on our economy, Fed members are also wondering whether the slowdown in growth seen in Q1 will be temporary. In short, there's no rush south of the border to tighten monetary conditions until there's solid evidence that the economy can handle it. Given this context, the likelihood of a key rate increase before September has now faded in the market's eyes.
This morning's eurozone PMI data showed a decline, falling from 53.9 to 53.4 in May. Curiously, the euro rallied despite the disappointing result. Across the Channel, the United Kingdom announced a 1.2% rise in Retail Sales in April.
Looking ahead, at 8:30 this morning, U.S. Initial Jobless Claims will be announced, followed by Existing Home Sales at 10:00. Have a great day.
- Range of the day: 1.2160 - 1.2270
Stéphane Goulet