As Europe and the UK return back to the markets after the Easter Bank Holiday, only one piece of data is posted over the shutdown from the US. On Friday, the final reading of Q4 GDP showed that the final quarter expanded at 1.4% faster than previously estimated. With the figure surpassing the forecasted 1%, the increase in domestic product has been attributed to the stronger household spending on services in the US. From the Bank Holiday Monday the US also released their monthly Home Sales figure which saw a jump up from 1.2% to 3.5%, and posting its highest level in seven months. All data from the US has been positive, showing Consumer Confidence in spending may be adding further weight for the Fed to increase rates sooner.
Today is another quiet day with the main data yet again coming from the US. Firstly with Consumer Confidence being released this afternoon, the gauge is expected to increase and again show further positive sentiment for the economy. However, the main focus of today will be on Fed Chair Janet Yellen, as she gives a speech in New York to the Economics Club. Last week saw relatively hawkish commentary from several Fed members but it is not expected that Yellen will give too much away on when the next rate rise could be seen. Markets will look for any clarity or any signals that June’s FOMC meeting will be the likeliest first rate rise for this year.