US: Fed speak, housing starts and consumer sentiment in focus - TDS

Analysts at TDS point out that Fed speak in addition to the housing starts and Preliminary University of Michigan sentiment will be keenly watched in today’s US session.

Key Quotes

“The Dallas Fed’s Kaplan will be the first regional president to speak following Wednesday’s rate hike when he takes to the podium at 12:45 ET. Kaplan is a 2017 voter and likely one of the median dots for three 2017 rate hikes.”

“On the data calendar, there are a few mid-tier releases that will make for a fairly quiet close to the week. TD expects housing starts to rise 2.4% m/m to 1200k in May, slightly below the consensus for 1220k. Markets look for pickup in housing starts to accompany a 1.7% m/m increase in permit issuance for a partial recovery of the drop in April. Preliminary University of Michigan sentiment for June is the last item on the calendar and the market is expecting an improvement to 113.2 from 111.7, which would match the post-election highs if realized.”