Although the greenback rebounded in New York trading on upbeat U.S. consumer spending data, price then pared its gains and ended marginally lower against its peers on Friday as the final University of Michigan report showing slipped consumer inflation expectation triggered concerns of recession over inflation worries.
Reuters reported U.S. consumer spending increased more than expected in June as Americans paid more for goods and services, with monthly inflation surging by the most since 2005. Consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 1.1% last month, the Commerce Department said on Friday. ata for May was revised up to show outlays gaining 0.3% instead of 0.2% as previously reported.
Economists polled had forecast consumer spending would accelerate by 0.9%.
Versus the Japanese yen, dollar fell from Asian high at 134.67 to a 6-week bottom at 132.51 at European open on cross-buying in jpy together with broad-based weakness in usd. However, the pair then rebounded strongly to 134.59 in New York morning after the release of U.S. data before retreating to 133.22.
The single currency traded with a firm bias in Asia and gained to session highs at 1.0254 at European open before retreating sharply to 1.0186. The pair then briefly rebounded to 1.0245 on upbeat EU GDP before falling to an intra-day low at 1.0147 in New York morning on usd's rebound after higher-than-expected US inflation data before recovering to 1.0227 on renewed usd's weakness near the close.
Sources from from Reuters, euro zone economic growth accelerated quarter-on-quarter in the second quarter, preliminary data showed on Friday, defying expectations of a slowdown, thanks to a much stronger than forecast performance in Spain, France and Italy.
Euro zone gross domestic product rose 0.7% quarter-on-quarter in the April-June period, estimates by the European Union's statistics office Eurostat showed and 4.0% year-on-year.
The Economists polled had expected a 0.2% quarterly rise and a 3.4% year-on-year gain, after a 0.5% quarterly increase and a 5.4% annual rise in the first three months.
The British pound also traded with a firm undertone in Asia and rose to a 1-month peak at 1.2245 in early European morning. However, price erased its gains and tumbled to session lows at 1.2064 in New York morning on usd's strength before rebounding strongly to 1.2188 near the close.
Data to be released this week :
Australia AIG manufacturing index, S&P manufacturing PMI, New Zealand building permits, Japan Jibun Bank manufacturing PMI, China Caixin manufacturing PMI, Germany retail sales, S&P manufacturing PMI, Swiss Market Holiday, France S&P manufacturing PMI, EU S&P manufacturing PMI, unemployment rate, Italy S&P manufacturing PMI, unemployment rate, U.K. S&P manufacturing PMI, U.S. S&P manufacturing PMI, construction spending, ISM manufacturing PMI and Canada market holiday on Monday.
Australia building permits, RBA interest rate decision, U.K. Nationwide house price, Swiss consumer confidence, manufacturing PMI, U.S. redbook, JOLTS job openings, Canada S&P manufacturing PMI and New Zealand GDT price index on Tuesday.
Australia AIG construction index, S&P Global services PMI, retail sales, New Zealand employment change, unemployment rate, labor costs index, Japan Jibun bank services PMI, China Caixin services PMI, Germany exports, imports, trade balance, current account, S&P Global services PMI, Swiss CPI, France budget balance, S&P Global services PMI, Italy S&P Global services PMI, retail sales, EU S&P Global services PMI, producer prices, retail sales, UK S&P Global services PMI, U.S. MBA mortgage application, S&P Global services PMI, durable goods, durable ex-defense, durable ex-transport, factory orders and ISM non-manufacturing PMI on Wednesday.
Australia trade balance, imports, exports, Germany industrial orders, U.K. S&P construction PMI, BOE interest rate decision, asset purchase program, BOE QE total, BOE QE corporate bond purchases, BOE MPC vote hike, BOE MPC vote unchanged, BOE MPC vote cut, U.S. international trade balance, goods trade balance, initial jobless claims, continuing jobless claims, Canada building permits, trade balance, exports and imports on Thursday.
Australia AIG services index, Japan all household spending, coincident index, leading indicator, UK Halifax housing prices, France current account, trade balance, industrial output, imports, exports, non-farm payrolls, Italy industrial output, U.S. non-farm payrolls, private payrolls, unemployment rate, average weekly earnings, Canada employment change, unemployment rate and Ivey PMI on Friday.
Trendsetter does not warrant or guarantee the accuracy, timeliness or completeness to its service or information contained therein. Trendsetter does not give, whatsoever, warranties, expressed or implied, to the results to be obtained by using its services or information it provided. Users are trading on their own risk and Trendsetter shall not be responsible under any circumstances for the consequences of such activities. Trendsetter and its affiliates, in no event, be liable to users or any third parties for any consequential damages, however arising, including but not limited to damages caused by negligence whether such damages were foreseen or unforeseen.
Recommended Content
Editors’ Picks
AUD/USD struggles near multi-month low below 0.6500 after Aussie jobs report
AUD/USD hangs near its lowest level since August 6 below the 0.6500 level following the release of rather unimpressive Australian employment details for October. Meanwhile, RBA Governor Michele Bullock said earlier on that interest rates were restrictive enough and will not rise any further.
USD/JPY briefly pops 156.00 on firmer US Dollar
USD/JPY holds firm near its highest level since July 24, having briefly popped 156.00 in the Asian session on Thursday. The continuation of the Trump trade lifts the US Dollar to yearly highs while Japan's stimulus plans fail to inspire the Yen. Traders watch out for any Japanese internvetion risks.
Gold downside appears unabated, with eyes on Fed Chair Powell
Gold price is sitting at its lowest level in two months near $2,560 early Thursday, as buyers eagerly await US Federal Reserve Jerome Powell’s speech for a brief respite.
XRP's open interest drops over 10% amid struggles near $0.7440 resistance
Ripple's XRP is trading near $0.6900, down nearly 3% on Wednesday, as declining open interest could extend its price correction. However, other on-chain metrics point to a long-term bullish setup.
Trump vs CPI
US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.