- U.S. core PCE price index up 0.1% as expected
- U.S. personal spending rose by 0.3% as expected in July
- U.S. personal income up 0.4% as expected in July
- U.S. June personal spending upgraded from 0.4% to 0.5%
- U.S. June personal income upgraded from 0.2% to 0.3%
- New Zealand building consents down 10.5% in July
- Japanese household spending down 0.5% y/y vs. estimated 1.3% drop
- Japan’s unemployment rate improved from 3.1% to 3.0%
- Japanese retail sales down 0.2% y/y vs. projected 0.9% decline
Profit-taking was the name of the game for the Greenback on Monday, as the U.S. currency returned a few of its recent gains to its counterparts.
U.S. data meets expectations – Economic figures from the U.S. hit the mark in July, but it seemed as though market watchers were looking for something a little more impressive. The core PCE price index posted another 0.1% uptick as expected, bringing the year-over-year gain to just 1.6%, which is still a few notches away from the Fed’s 2% inflation target.
Meanwhile, personal spending rose by 0.3% while personal income was up 0.4% in July as expected. The June personal spending figure enjoyed an upgrade from 0.4% to 0.5% while the personal income reading was revised from 0.2% to 0.3%. These gains were mostly spurred by higher spending for new motor vehicles, according to the components of the report.
Major Currency Movers:
USD – The U.S. currency took a break from its post-Jackson Hole party as bulls booked profits off their recent positions.
EUR/USD retreated from 1.1168 to 1.1188, USD/JPY fell from 102.30 to 101.94, GBP/USD pulled up from 1.3065 to a high of 1.3121, USD/CHF moved sideways below .9800, and AUD/USD popped up from .7549 to .7575.
Watch Out For:
- 1:30 am GMT: Australia building approvals (0.0% expected, -2.9% previous)
Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.
Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!