Forex broker indices are going up and down with the continuing cascade of financial news coming out of the U.S and Europe throughout this week and also tomorrow.
U.S consumer spending climbed in July for the first time in three months, as the biggest part of the economy struggled to overcome a jobless rate hovering 8 percent.
Forex broker indices are going up and down with the continuing cascade of financial news coming out of the U.S and Europe throughout this week and also tomorrow. U.S consumer spending climbed in July for the first time in three months, as the biggest part of the economy struggled to overcome a jobless rate hovering 8 percent. According to figures from the Department of Commerce, purchases increased 0.4 percent after experiencing little change in May and June, which may set the stage for faster third-quarter economic growth. “The quarter is getting off to a decent start”, explained Gus Faucher, senior economist at PNC Financial Services Group Inc. in Pittsburgh, who correctly forecast the increases in purchases and income. “The consumer’s situation is slowly improving, but the job growth isn’t there to support really big gains in future spending”, concluded Faucher. The Pending Homes Sales Figures also came in significantly higher than expected, creating a positive feedback through which forex broker investments can expand. The number of U.S home buyers who signed contracts to purchase previously owned homes rose to the highest level in more than two years, the latest sign of a strengthening housing market. The U.S dollar was able to recover lost ground against its main currency rivals during European trading yesterday, as the positive data caused investors to shift their funds to the greenback. The USD/JPY forex broker pair advanced more than 30 pips for the day, reaching as high as 78.78 by the end of the European session. The dollar traded as high as 0.9592 against the Swiss Franc, up more than 40 pips for the day. The U.S Jobless Claims was another important release this week. The number of weekly unemployment claims in the U.S stands at 374k, a higher figure than the expected 370k, but within reasonable margin. Continuing jobless claims now stand on 3.316 million, higher than the expected 3.307 million but lower than last week’s forex broker updated 3.321 million. Now, forex brokers are waiting for President of the Federal Reserve Ben Bernanke’s speech scheduled for Friday, in which he is expected to provide information on future economic policies. Forex websites and forums are filled with comments on a possible QE3 in September, but it is not a done deal for anyone. The release of U.S figures has certainly calmed the waters regarding federal easing, but we will have to wait for further hints.