US trade deficit for May showed a small deterioration from April

US trade for May showed a small deterioration in the deficit from April, but beat expectations at -$41.87bn vs. est. -$42.70bn. Details show real exports tracking +5.1% q/q ann. and imports at -1.4%. That implies a trade contribution of about +0.9pp in Q2-which fits with expectations for trade to be a strong driver of Q2 topline growth. 

Tonight we get the June FOMC minutes where the comments are expected to reflect the reality of lower GDP (following a soft Q1) but also a tilt toward a September liftoff. Keep in mind nearly 60% of Fed members are penciling in at least 2 hikes this year (i.e a Sep start) and 90% are looking for at least one hike. 

"despite the modest mark lower in the dots and perhaps a tighter vote, we think the risk is that the minutes are perceived to be marginally hawkish",says RBC Capital Markets.