U.S personal income increased by 0.3 percent or $52.5 billion, while consumer spending increased by 0.4 percent or $54.9 billion in August, according to the Bureau of Economic Analysis.
Personal income came out short of 0.4 percent forecasted in August, and 0.2 percent short of what was obtained in July.
The data shows that gain in the labor market recorded in August coupled with affordable gasoline due to lower energy prices and growing incomes have helped increase consumer expenditures, which accounts for around 70 percent of the total US economy.
Although inflation is still below the projected FED’s 2 percent, most analysts have attributed it to the poor energy sector due to a fall in global oil prices.
Pending home sales data released on Monday by the National Association of Realtors, shows a 1.4 percent decline in August from 0.5 percent recorded in July. This is the lowest pending home sales since June 2015.
The data further validated the fact that the U.S economy is yet to reach full recovery, even though GDP surged 3.9 percent, research has shown that consumer spending is largely responsible for positive economic data, which might not translate to future positive outlooks except exports and the global economy pick up the pace.
US dollar lost 0.04 percent against the Euro and 0.55 percent against the Japanese Yen after the data were made public.
Still early to infer possible market direction as we await Non-Farm Payroll (NFP) and key market events across the globe later in the week.
But nevertheless, Investors King has eyes on EURGBP for possible sell order because of several exhausting candlesticks and fundamentally, Investors King does not see 0.74249 resistance breaking just yet.
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