U.S. Session Forex Recap – August 30, 2016

  • 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.

Major Events:

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)

See also:

Asian Session Recap

London Session Recap

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