Macro Mondays | Weak US Data but a Hawkish Federal Reserve

Today, Macro specialist James Brodie discusses last week’s weaker than expected US economic data, as well as the more hawkish Federal Reserve, the U.S. central bank. Research Analyst, Harry Nedeljkovic weighs in on the up-coming French election, in addition to Argentina and especially their economic situation. Group Head of Research, Harry Tchilinguirian joins Macro Mondays for the first time to talk through how the recent data out of China may come to impact oil demand.

CPI & PPI both came in lower than expected and US consumer sentiment fell sharply to a 7-month low. Yet the Fed see the Unemployment rate remaining at 4.0% until year end.

China data was interesting this week; Industrial production (5.6%) came in lower than expected (YoY growth decelerated) but retail sales beat expectations at +3.7%. However, the property price fall was the largest monthly fall in over 13 years.

The key data to look out for this week is;

Tuesday – US retail sales & Industrial production, plus RBA.

Wednesday – U.S. markets closed, UK inflation

Thursday – BOE & SNB

Friday – U.S. PMI data, UK & Canada retail sales.