USD flows: Net firm batch of US data, if no knock-outs
Strong batch of data overall, though avoids any 'headline shocks'
Mkt consolidates its recent repositioning
Quite a flood of US data but the market’s eye will probably first go to the PCE prices data and that comes in on expectations at 0.3% core though with the prior month revised up to 0.3% too - so not entirely net neutral. Probably tolerable though and no headline shocker. Headline PCE prices slightly undershoots at 0.4% (mkt 0.5%).
Durable goods is weaker than expected, though down to transport (ex transport 1.3%). Nondef cap ex-air at 1.6% back to strong and so showing that familiar build out sub-trend that’s so important to the current cycle. Final Q1 GDP also revised up to a robust 2% handle.
All in all then, net strong data but no headline knockouts as far as the market is concerned, at least after recent re-positioning.