The United States will publish a headline and core inflation rate on July 13, at 15:30 MT time.
American consumer spending rallies
In August, American consumer spending surged steadily, backing hopes for firm economic rally in the third quarter. Moreover, a measure of underlying inflation was still at the US key bank’s 2% objective for a fourth straight month.
On Friday, the Commerce Department disclosed that consumer spending, accounting for more than two-thirds of American economic activity, tacked on by 0.3% in August after July’s unrevised 0.4% leap. The previous month spending was powered by outlays on healthcare that compensated a sag in car sales.
August's rally in consumer spending appeared to be in line with experts’ estimates.
When updated for inflation, in August consumer spending added 0.2% having soared by 0.3% in July.
The report showed up on the heels of data on Thursday disclosing a dive in orders for primary capital products in August as well as a further extension of the products trade deficit that helped market experts to had their GDP estimates downgraded for the third quarter to a 2.8% annualized rate.
As a matter of fact, in the second quarter the American economy rallied at a 4.2% tempo, driven by firm consumer spending along with farmers front-loading soybean exports to China before this country’s retaliatory levies came into effect in July.
China and America are embroiled in a worsening trade conflict. Market experts have already warned that the increasingly bitter trade feud could impact consumer and business spending.
American Treasury yields kept to session minimums after the data. American stock index futures headed south, while the USD index surged versus a pack of key currencies.
Spending on goods surged by 0.3% in August, probably backed by higher gasoline prices. In July, spending on products ascended by 0.5%. As for outlays on services, they managed to rally by 0.4%.
Personal income added 0.3% in August.
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!