Daily Note – America back on track?

GM360Summary:

United States: Yellen targets rate in 2015

United States: Core CPI accelerates in April

United Kingdom: Borrowing Requirement Slows

Eurozone: German Confidence stable in May

Good morning,

The markets are behaving again as if the US is growing strongly, the dollar is up and European markets are rising on the back of QE. It feels like March all over again!

In a keynote speech over the weekend Fed Chair Janet Yellen downplayed weak Q1 growth and said that lift-off of the funds rate “will be appropriate at some point this year” if the economy continues to improve in line with her expectations.

Yellen downplayed the weak economic data received in recent months. In particular, she described the soft Q1 GDP print as “largely the result of a variety of transitory factors” such as severe weather and the West Coast port strikes.

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Global Macro-Daily Note 26th May 2015

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