US: Key events for next week - Danske Bank

Analysts from Danske Bank take a look into next week key events, that includes a major speech from US President Trump. 

Key Quotes: 

“In the US, Donald Trump is set to give a speech at a joint session in Congress. A few weeks ago, Donald Trump promised that he would announce ‘something phenomenal in terms of tax’ and we believe that he is likely to use this opportunity to reveal some of his thoughts on the topic.”

“PCE core inflation for January is due to be released on Wednesday. PCE inflation has been quite flat at around 1.7% since August with no clear trend. We estimate PCE core was 0.25% m/m and 1.7% y/y in January. However, given that CPI for January came out higher than expected, there may be upside risk to these estimates."

“On Monday, capital goods orders data for January is due out. These figures will give us a first impression of whether investments continue to gain momentum as seen during the second half of 2016. On Wednesday, ISM manufacturing for February is due out.”

“Tuesday brings Conference board consumer confidence for February. The University of Michigan consumer confidence fell a bit in February, but this just closed the small gap between the two numbers. Hence, we are looking for a more or less unchanged Conference board index in February.”

“Several speeches are due to be given by members of the FOMC, including a speech by chair Janet Yellen in Chicago on Friday. Based on the FOMC minutes, only ‘a few’ FOMC members seem ready to hike in March.”