US: Housing data and FOMC minutes in focus – BBH

In the US session, before getting to the FOMC minutes, investors will digest the July housing start and permits data which will be keenly watched by investors, according to analysts at BBH.  

Key Quotes

“Large increases in June warns of an adjustment in July.  However, given yesterday's news, which included a strong bounce back in July retail sales and a surge in the Empire State manufacturing survey for August, confidence that the world's largest economy gained momentum at the start of Q3 is unlikely to be undermined by today's data.”

“We have played down the likely significance of the FOMC minutes from last month's meeting.  The market does not expect a September hike.  Therefore, a debate about the significance of the weakness in inflation is unlikely to change that.  We note that the June minutes said that most participants understood the decline in price pressures to be due to transitory factors.  Also, we see place emphasis on Dudley's recent comments.  We suspect he reflected the views of the Fed's leadership more broadly.”