Current account deficit expected to plummet

The US reports its quarterly current account figures for the first quarter of the year at 12:30 GMT. The gap is expected to shrink to $85 bln in Q1 versus $132.8 bln in Q4.

The decline will be short-lived, however, as ballooning US borrowing needs will push the gap wider later in the year.

CPI is set for release at 12:30 as well. It is seen rising 0.3% in May and 0.1% ex-food and energy.

A narrower current account gap could be a short-term dollar plus but looming trillion dollardeficits should limit any upside.