US retail sales report key, but unlikely to markedly shift post-payrolls sentiment

Even in the aftermath of the solid May employment report, the onus remains on lasting evidence of a return to US growth in Q2 and over 2015 for the FOMC to proceed towards the tightening of monetary policy this year. 

The apparent reluctance of US consumers to spend the windfall from lower fuel costs remains surprising, and will be watched for in the May retail sales report (Thu). June's Michigan consumer sentiment survey (Fri) will also be of keen interest.

"Robust car sales and recovering gasoline prices are expected to support a strong monthly gain in values sold, although the 'control group' figure - which feeds into estimates of GDP - is likely to be weaker." notes Lloyds Bank