The euro/dollar has stabilized
01.06.2015
The main currency pair opened the first week of summer smoothly and with restraint. Ahead there is a lot of statistics, and investors are saving strength.
The euro has stabilized, although in the first half of the trading day on Monday it noticeably weakened. The new week will be full of macroeconomic reports and events. It seems that this will be a summer "preview".
Statistics published today showed that consumer spending in the US at the end of April has not changed. The index of personal spending fell seasonally adjusted by 0.1% m/m. The level of personal income rose by 0.4% m/m against the forecast of growth of 0.2%.
It turns out that, despite the generally healthy financial position, the lion's share of Americans are not in a hurry to spend money. Either the prices are unattractive (though what may happen to them, as for 36 months, inflation has remained below the Fed's objectives), or the horizons are not clear enough. It is known that the rate of consumer spending is a sufficiently accurate indicator of the state of the economy. It gives 2/3 to the GDP volume.
In fact, the authorities have done what they could to increase the spending of Americans. Everything is well with jobs, with stability here being neutral. The prices are in equilibrium. Weather is also neutral – no storms or hurricanes. If consumers do not start to spend aggressively in the second quarter, the US GDP will not be able to get out of the negative zone. It would be very unpleasant.
RoboForex Analytical Department
The euro has stabilized, although in the first half of the trading day on Monday it noticeably weakened. The new week will be full of macroeconomic reports and events. It seems that this will be a summer "preview".
Statistics published today showed that consumer spending in the US at the end of April has not changed. The index of personal spending fell seasonally adjusted by 0.1% m/m. The level of personal income rose by 0.4% m/m against the forecast of growth of 0.2%.
It turns out that, despite the generally healthy financial position, the lion's share of Americans are not in a hurry to spend money. Either the prices are unattractive (though what may happen to them, as for 36 months, inflation has remained below the Fed's objectives), or the horizons are not clear enough. It is known that the rate of consumer spending is a sufficiently accurate indicator of the state of the economy. It gives 2/3 to the GDP volume.
In fact, the authorities have done what they could to increase the spending of Americans. Everything is well with jobs, with stability here being neutral. The prices are in equilibrium. Weather is also neutral – no storms or hurricanes. If consumers do not start to spend aggressively in the second quarter, the US GDP will not be able to get out of the negative zone. It would be very unpleasant.
RoboForex Analytical Department
Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.