Watch the inflation numbers
PCE is the Fed's preferred measure of inflation so they will be watching it closely in Friday's release. The April data is forecast to show 3.5% y/y price rises and 2.9% on the core. That's a dramatic jump from 1.9% core inflation in March. The report is the highlight of what will be a tricky Friday trade.
That's because Monday is a holiday in the US and many desks will be winding down early as Americans celebrate the first holiday in more than a year with minimal covid restrictions. It's also the final trading day of the month and fixing flows have been a factor already this week.
Other data on Friday includes the advance good trade balance report and the second look at U Mich sentiment.
