Dollar Gains on Euro for Third Session

The dollar gained on the euro for the third straight trading session today due to the positive Chicago Business Barometer and the very good Michigan consumer sentiment. The unexpected monetary from the Bank of Japan also helped the greenback as investors in need of safety were running away from the yen to the US currency.
Both personal income and spending trailed analysts’ estimates. Personal income rose 0.2% in September compared to the projections of 0.3% growth. Personal spending fell 0.2% instead of rising at the same rate as was predicted. In August, income grew 0.3%, while spending increased 0.5%. (Event A on the chart.)
Chicago PMI jumped from 60.5 in September to 66.2 in October instead of slipping to 60.2 as was expected by economists. The report said that the jump of the index “suggests that against a backdrop of concerns about weakening growth in Europe and China, the US economy is still growing firmly”. (Event B on the chart.)
Revised Michigan Sentiment Index rose slightly to 86.9 in October from the preliminary value of 86.4, while most analysts expected no change. The September reading was at 84.6. The report said that “consumers reported the most favorable personal financial expectations as well as the most positive year-ahead outlook for the national economy in the past seven years”. (Event C on the chart.)


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