The May Personal Consumption Expenditure report is coming up
This week ends with a flourish with the top economic data points of the week due out at the bottom of the hour.
The PCE report is currently top-shelf economic data. The inflation side of things is expected at 2.2% y/y with PCE core forecast at 1.9%, up from 1.8% in April. The personal income and spending numbers are also market movers.
PCE core:
As for Canada, the market is now pricing in a 70% chance of a hike on July 11 but that could change with the April GDP report. The consensus is for a flat month after a 0.3% rise in March but retail sales were very weak and the weather in April was terrible. I see the risks to the downside and a boost to USD/CAD.
