US labour report is the key for FOMC decision - ING

Research Team at ING, suggests that in next week’s US labour report, anything above last month’s 160k non-farm payrolls reading should be sufficient for the FOMC, whilst any unexpected positive swing in wage growth could foster some further thoughts of a June hike.

Key Quotes

“On balance, the FOMC is in no hurry and may wait until July when the event risk surrounding the UK referendum has passed.

In EMEA, we expect that CPI should inch up after a few months of deepening CPI deflation in Poland and annual inflation to remain flat this month in Turkey. In Czech Republic, May PMI should improve as confidence in industry picked up.

The consensus forecast for China’s official manufacturing PMIs for May is 50.0, down from 50.1 in April. We can infer from the sharp slowdown in new Yuan loans last month that activity weakened further and therefore consider the consensus PMI forecast to be at risk of more downside than an upside surprise.”