Personal Spending Outpaces Income

Well, the happy morning for the commodity currencies turned sour on the day, as the risk assets all got slapped around by the markets. The risk assets went sour after the personal income/spending data printed…

Say it ain't so, Joe!

Is this a case of “here we go again?�

Here's the skinny of what I'm talking about… Yesterday, personal income printed at 0.2 less than personal spending! So… Are we back to spending more than we make? I sure hope not… But, that sure seems to be the bill of fare here. I have to say that I'm not surprised that the US consumer continues to spend during the recession and labor depression that we have, for this is the main reason I've said that this will be the difference between Japan's multi-year deflation, and the US… However, I am surprised at how strong that spending is…

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A Flat Day Trading Currencies

Recall, last Friday, we were waiting for the second quarter GDP print to see if any of the Fed Heads at the Jackson Hole boondoggle would comment on what I expected to see, which was GDP falling to 1.5%…

Well… I should have booked a flight to Vegas on Friday, as I darn near hit the GDP downward revision bang on! The actual number, that is if you even believe that this number is really the “actual numberâ€?, was 1.6% for the second qurarter. But, I don't gamble, except for my annual World Series bet on the Cardinals, and an occasional neighborhood, nickel, dime poker game, so… I'll stick to writing…

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What to Expect from Second Quarter GDP

The currencies are trading in the same clothes as yesterday. It's almost like the movie Groundhog Day, for the euro (EUR) has performed the say way as the previous sessions… For instance, the euro rose up to 1.2765 yesterday, only to fall back to just above 1.27, and then overnight, like the previous night, the euro rose to 1.2740, only to see it fall back again.

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US GDP Spooks Currencies

Yesterday, I saw the euro (EUR) touch 1.31, but it was quickly sent back down, but held steady Eddie around 1.3080 most of the day… But this morning, in the European session, the single unit has dropped to below 1.30… So… I saw that as I turned on the screens and thought, “Hmmm… I wonder what's going on in Europe to cause this selling?â€?

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