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Leading index signals US economic rebound underway – BTMU

FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, believes that release of the latest index of economic indicators suggests the US economy is beginning to rebound from the previous slump.

Key Quotes

“The latest US economic data flow from yesterday was mixed. Existing home sales unexpectedly decreased by -3.3% in April following a 6.5% increase in March. The regional manufacturing surveys from Philadelphia and Kansas signalled that economic growth in the sector remains modest.”

“The release of the latest index of leading economic indicators provided a more encouraging signal that the US economy is beginning to rebound increasing by 0.7% in April following an upwardly revised 0.4% increase in March. It was the strongest monthly increase since September of last year and was boosted by the surge in building permits. It provides reassurance that the US economy is regaining upward momentum after the sharp slowdown at the start of the year.”

“The release of the latest CPI report for April will be in focus today. Core inflation has proved firmer than expected so far this year despite the sharp strengthening of the US dollar which if continued in today’s report will provide some support the US dollar.”

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