US: Bar to a July Fed hike does not appear to have changed - BBH

Research Team at BBH, suggests that the US reports May existing home sales and another small increase is expected; around April's 1.7% rate. 

Key Quotes

“It is not a market-mover. Canada reports April retail sales. A healthy recovery from the 1.0% drop in March is expected. Yellen faces questions today by the House Financial Service Committee. We do not see substantive differences between what Yellen said yesterday and her other recent remarks. 

The bar to a July hike does not appear to have changed.  We see it as three-fold:  stable global financial markets, a strong recovery in the pace of job growth (and ideally more wage pressure) and continued firm consumption. Vice Chairman Fischer also speaks today. He is participating in a panel at Sweden's Riskbank conference. We continue to find it helpful to focus on the comments by the Fed's leadership. This point is all the more important, given St.Louis Fed's Bullard's lone adoption of a "new paradigm", which impact the median dot plot projections.”