A further deterioration in German investor sentiment is forecast for May, although other timely gauges point to a more nuanced outlook.

An analysts’ poll predicted that the forward-looking economic sentiment reading from a survey conducted by Germany’s ZEW economic institute will soften to -19.5 from -17.4 in April.

The institute’s current conditions indicator is expected to decline to -78.0 from -73.7. The reading for the Eurozone is set to fall to -20.0, although this would still represent a marginal improvement on last month’s print. (LS – Continue Reading)

The ongoing blockade in the Strait of Hormuz and the increasingly fragile truce between the main Gulf protagonists are expected to remain the key drivers of US inflation in April, according to analysts.

Annual headline CPI is forecast to have accelerated to 3.7% in April from 3.4% previously. On a monthly basis, however, price growth is expected to have slowed by three tenths to 0.6%.

Core CPI, which excludes food and energy, is projected to have risen 2.7% y/y, a tenth above the prior month’s reading. (LS – Continue Reading)

Kevin Warsh’s nomination to the Federal Reserve Board of Governors on Monday cleared the first in a series of Senate votes planned this week to install him as chair of the US central bank.

The Senate voted 49-44 on Monday evening to advance Warsh through a procedural obstacle, setting up a vote Tuesday to confirm him to the Fed board. A separate Senate vote confirming Warsh to succeed Jerome Powell as chairman of the board is expected later in the week. (BBG – Continue Reading)

Some Bank of Japan policymakers in April saw the need to raise interest rates soon, with one signalling the chance of accelerating the pace of hikes if inflationary risks heightened, a summary of opinions at last month's meeting showed on Tuesday.

"It is ⁠quite possible the BoJ will raise interest rates from the next meeting onward, even if the future course of the Middle East conflict remains unclear," one board member was quoted as saying in the summary.

"While there is no need to take hasty action at this point, the BoJ should raise rates soon barring evident signs ⁠of an economic slowdown," another opinion showed. (RTRS – Continue Reading)