US: Focus on Friday’s CPI and retail sales data - BNZ

According to Jason Wong, Currency Strategist at BNZ, in the US the focus will be on Friday’s CPI and retail sales data, where the market is not expecting a repeat of the very soft figures in March.

Key Quotes

“If core CPI undershoots expectations for a second consecutive month, then expect the market to unwind the 75% pricing risk of a June rate hike by the Fed and a weaker USD. Ahead of that release, Fed speakers will be out in force during the week, no doubt repeating the mantra that despite soft GDP, CPI and average wage data the outlook for the economy and higher rates hasn’t really changed.”