USD Gets No Support From Mixed Data

Market Reviews

US dollar is trading mixed after PCE inflation data. Japanese yen and Swiss franc are trading as the weakest ones, as risk appetite has improved on the markets. Euro is the third weakest. Commodity currencies are trading generally higher.

On stock markets, FTSE MIB gained 2.37%, FTSE 100 increased by 1.95%, DAX gained 1.99% and CAC rose by 1.08%. Earlier in Asia, major indices closed mixed. China Shanghai SSE closed down 2.18% at 2542.17. Hong Kong HSI increased by 0.28%. Nikkei lost 0.16%. Singapore Strait Times grew by 0.32%.

German Chancellor confirmed the rumor that she is not going to run for leadership of the Christian Democratic Union again in December. Merkel’s Conservatives (CDU) won regional elections in the Western state of Hesse on Sunday, but with surprisingly small support. The coalition SPD partners performed even worse, leading them to question their cooperation with Merkel’s party. The SPD is now planning to create a new roadmap to measure progress in national government, which will be reviewed next year.

Today’s data showed, that US consumer spending rose 0.4% in September, after a 0.5% increase in the previous month. Personal income rose 0.2% in September after advancing 0.4% the previous month. August’s reading was revised up from initial 0.3% gain. Economists had expected a 0.4% advance. The so-called core PCE increased 2.0% yoy in September, remaining unchanged from a month earlier.

Also released today, UK mortgage approval rose to 65k in September, M3 money supply dropped -0.3% mom. Japan retail sales rose 2.1% yoy in September.

Markets expect UK Chancellor of the Exchequer Philip Hammond’s budget speech. Philip Hammond is set to announce billions in extra public spending as he presents the government’s final Budget before Britain leaves the European Union next year.