Monday came with the release of the new personal spending data in the US. Figures show higher than expected values for Augusts’ personal spending, and also a reduction in the income’s growth pace. The personal income rose last month with 0.3%, under the analysts’ estimated 0.4% growth, whilst personal spending went up 0.4% (forecasted only 0.3%).This data clutch is coming after Q2’s GDP (second quarter’s Gross Domestic Product) upward revision on Friday. According to the same report, the price index (measured through consumers spending – Fed’s preferred inflation gauge) remained at its previous level. The yearly gauge is set at +0.3%, but core figures are up 0.1% from July and 1.3% yearly since last August. Regarding saving rates, their level is marginally lower than last year’s, at 4.6%. On the whole, the big picture shows that economy is recuperating slowly.
EUR/USD spirals further down, the greenback gaining more ground on Tuesday as the session low reached the 1.1200 area. The biggest blow came from the preliminary inflation figures of the German economy released earlier yesterday. According to latest information consumer prices dropped 0.2% and flattened the yearly hike. The HICP (Harmonized Index of Consumer Prices) shows a larger 0.3% drop on a month-to-month basis and 0.2% decrease in the last 12 months.
As expected, USD/JPY raced up after yesterday’s release of US consumer confidence figures, with a spike at 120.15 but a quick balance back under the 120.00 threshold. At the moment of writing, the major is trading at 119.75-80 in the vicinity of the hourly 20-SMA and Monday’s session close. As it was mentioned about the consumer confidence index, it is fair to say that latest data revised the figure from 101.3 to 103, with an initial expectation of 96.1.
The yellow metal is on a falling spree, posting losses the third week in a row with grim foresight from the $1,157 per ounce resistance threshold (25th of September’s high). There was a slight comeback for Gold in the Wall Street session opening, managing to trade at $1,134, but soon after the trend crumbled, going under $1,130. At the moment of writing it managed to stay over the $1,123.75 support line (Asian session lows) at $1,128.00. The bearish sentiment is still pressuring Gold’s evolution towards last week’s low at $1,121.50. Despite the steady greenback, the yellow metal is still posting significant lows.
Regarding crude oil, there is a 1.90% rise in prices but stocks results on Wall Street are having biased results.
