EUR/USD gained today, following yesterday’s losses, but the gains were not impressive. The presidents of Spain and France are meeting in Madrid, spurring talks that Spain would ask for a bailout. Traders expect Federal Reserve Chairman Ben Bernanke to speak at Jackson Hole Symposium tomorrow, giving hints about probability of additional quantitative easing. Jobless claims were stable last week, suggesting that QE may be postponed.
Initial jobless claims were stable at 374k last week, while economists hoped for a little decrease to 370k. (Event A on the chart.)
Personal income and spending increased in July. The income rose 0.3%, the same rate as in June (revised down from 0.5%), while the media forecast was 0.4%. The spending edged up 0.4%, matching expectations, following zero growth in June. (Event A on the chart.)
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