A week that may be dominated by the outcome of the FOMC meeting on Wednesday kicks off with a number of US releases primarily focused on manufacturing. US manufacturing seemed to slow even more sharply than the economy as a whole during the winter, possibly due to a hit to competitiveness from the strong dollar. However, there have been tentative signs of a rebound in recent weeks.
The Empire manufacturing survey rose modestly in May, although it is still well below its highs of last autumn, a further modest rise is expected in June, states Lloyds Bank. The rise in business survey data during May, suggests that the official industrial production indicator will also pickup. There have also been tentative signs of an acceleration in housing activity of late and so the NAHB confidence survey is likely to rebound in June following its surprising decline in May.
Elsewhere it is a quiet start to the week with no date releases of real note. However, several ECB policymakers are due to speak including ECB President Draghi who appears before the EU parliament. This gives him a chance, if he wishes, to address the negative impact, of his recent comments, on bond markets, he may also be asked about the potential implications of Grexit for the rest of the euro area, says Lloyds Bank.
