US data: a case for higher US rates - ANZ

Analysts at ANZ explained that the US data supported the case for higher rates.

Key Quotes:

"With the PCE deflator (1.9% y/y) the highest since 2012 despite undershooting expectations, the manufacturing ISM jumping to its highest level since 2013, and personal income and spending rising."

"Germany’s HICP inflation was stronger than expected at 2.2% y/y, the highest since 2012. The labour report was strong too. But with euro area core inflation stuck at 0.9% and a still-sizeable output gap that the ECB estimates will take 21⁄2 years to close, the ECB is not going to be deviating from its dovish path for a while yet."

"The UK PMI disappointed but remains in healthy territory, while UK consumer credit rebounded."