The US NFP report will come out on January 8 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.
FOMC Meeting Minutes will be released on January 6 at 21:00 MT time.
USD: all attention to Manufacturing PMI Instruments to trade: EUR/USD, USD/JPY, USD/CHF US ISM Manufacturing PMI will be out on January 4 at 17:00 MT time…
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.