The United States will publish a headline and core inflation rate on July 13, at 15:30 MT time.
American consumer spending goes up in October
In October, American consumer spending went up by the most for seven months. However, underlying price pressures speeded down, with an inflation measure closely watched by the Federal Reserve pointing to its smallest annual leap since February.
On Thursday, the Commerce Department informed that consumer spending, amounting to over 2/3 of American economic activity, went up by 0.6% in October due to the fact American households spent more on utilities and prescription medication.
September’s report was updated downwards to demonstrate spending heading north by 0.2% instead of the previously posted 0.4% profit.
Market analysts had foreseen consumer spending soaring by 0.4% in October. When updated for inflation, US consumer spending managed to rally by 0.4%, which is the biggest leap for seven months. It pointed to a firm tempo of consumption early in the fourth quarter.
Notwithstanding the firm consumer spending, there’re signs that economic surge in the United States is speeding down. This month’s data hinted at a moderation in business spending on equipment. Moreover, the data also pointed to a deterioration in the trade deficit and also worsening weakness in the housing market. Surge estimates for the fourth quarter point to a 2.5% annualized rate. In the July-September quarter the American economy headed north at a 3.5 percent tempo.
In October, spending on products in the United States went up by 0.5% having ascended by 0.1% in September. As for outlays on services, they jumped by 0.7% having jumped by 0.3% in September.
The previous month there was a deceleration in price gains. As for the personal consumption expenditures price index without energy and good, it leapt by 0.1% having surged by 0.2% in September.
It lowered the year-on-year surge in the PCE price index to about 1.8% from November’s reading of 1.9%, which is the lowest result since February.
Federal Open Market Committee, a committee within the Federal Reserve System (the Fed), will reveal a detailed record of the most recent meeting on July 7 at 21:00 MT.
The United States will post the indicators of employment on July 2, at 15:30 MT time.
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!