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According to Danske Bank analysts, US data yesterday were strong,  not least US retail sales (control group) which rose 1.0% in July suggesting private consumption remains a strong growth driver in Q3.

Key Quotes

“We also believe the fundamentals for continued private consumption growth are strong with e.g. high consumer confidence and solid real wage growth.”

“Both the Philly Fed and Empire PMI manufacturing indices signal a rebound in ISM manufacturing in August. It may seem odd that the Fed is easing while economic data is strong but the Fed will be concerned whether data will continue to stay strong without further easing.”