US: PPI and NFIB Small Business Optimism Index in focus - Rabobank

Piotr Matys, EM FX Strategist at Rabobank suggests that producer prices and NFIB Small Business Optimism Index will be the key economic releases for today’s US session.

Key Quotes

“Following the sharp rise to the highest level since 2012 in April, US producer prices are expected to edge lower to 2.3% y/y in May from 2.5% y/y in previous month. Excluding food and energy, producer prices are anticipated to remain unchanged at 1.9% y/y according to the Bloomberg survey.”

“The US NFIB Small Business Optimism Index is forecast to stay flat at 104.5 in May. An outburst of optimism that President Donald Trump will deliver his pre-election fiscal pledges fuelled sentiment amongst companies to 105.9 in January. However, the optimism has faded as the Trump administration has not provided too many details regarding rate cuts, infrastructure spending and deregulation being distracted by allegations of colluding with the Russians.”