Tomorrow's Macro Roadmap: RBA, ECB, BOE & Fed speak / Swiss trade balance / EZ inflation / US JOLTS
On the policy maker front, the Fed’s Kashkari will speak at 07:50 CET. In his last speech, he said it’s too early to conclude that interest rates need to rise, while arguing that the central bank should keep all options on the table. “I think it’s premature for me to conclude we need to be raising rates right away,” Kashkari said Friday at an event at Korea University in Seoul. “We need to keep watching the data and watching how the conflict in the Middle East unfolds before I want to make any adjustments.” (BBG)
The ECB’s Olli Rehn will speak at 11:00 CET. On May 21st, he said that the European Central Bank may have to tighten monetary policy to protect its credibility after the war in Iran sent inflation past the 2% target. He said that the euro zone is sliding toward the ECB’s adverse scenario of slower economic expansion and faster inflation, which may force it to raise interest rates “for the sake of credibility.” He added that, for now, “we see some vibration in the short-term inflation expectations, but no significant deviation in medium- to long-term inflation expectations.”
The Swiss trade balance will be released at 08:00 CET. There is no consensus estimate available.
In the US, the JOLTS report for April could attract attention, especially the quits rate, which correlates well with wages. Analysts note that the rate of decline in openings is gradually slowing; Indeed daily postings are stabilising and layoffs (claims/Challenger/WARN) remain contained.
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