Forex: US dollar remains strong on positive Personal Income data

on Jun 27, 2013
Listen Thursday June 27th:_ During the European trading session the US dollar has remained stronger against the other majors as traders waited on the release of the latest US economic data.

The greenback still continues to be supported by the expectation that the Fed will start to scale back its bond buying program later in 2013 and despite the tepid economic growth in USA in the first quarter of 2013.

At 13:30 BST today several US economic updates were released.
The advance figure for seasonally adjusted initial jobless claims for the week ended June 22 was 346,000, showing a decrease of 9,000 from the previous week’s revised figure of 355,000. Meanwhile the number for seasonally adjusted insured unemployment figures during the week ended June 15 was 2,965,000 against the revised level of 2,966,000.

Personal Spending value climbed 0.3 percent in May, reversing April’s 0.3 percent decline (the biggest drop in four years).
The annualised reading for May of the Core Personal Consumption Expenditure – Price Index remained unchanged at 1.1 percent.
The seasonally adjusted rate of the US Personal Income for May rose to 0.5 percent, beating expectations for a 0.2 percent rise.

Following the releases the US dollar retained its recent gains against the other majors and is currently trading as follows:
EUR/USD – 1.3022;
GBP/USD – 1.5253;
USD/JPY – 98.21.
Yesterday the greenback was influenced by the disappointing US GDP Q1 data which came out revised down to 1.8 percent from the previously estimated 2.4 percent on an annual base. The inflation as measured by the Personal Consumption Expenditures index rose by one percent in the first quarter of 2013 q/q. The Core reading, excluding food and energy costs, rose 1.3 percent q/q. Both numbers matched expectations.