Data:
06:45 France Consumer spending (September) -0.5%
06:45 France Consumer spending (September) Y/Y -1.3%
The euro fell against the dollar as Italy sold less than its maximum target at an auction today, reviving concern the region’s debt crisis has further to run.
The Treasury in Rome sold 7.93 billion euros ($11.2 billion), less than the maximum 8.5 billion-euro target, of four different bonds today. The yield on Italy’s benchmark 10-year bond rose 11 basis points, or 0.11 percentage point, to 5.98 percent after the auction.
Europe’s currency fell from a seven-week high reached yesterday after leaders announced a plan to prevent a Greek default, safeguard banks and stem contagion.
EUR/USD: the pair holds in $1,4150-$ 1,4200.
GBP/USD: the pair grown in $1,6100 area.
USD/JPY: the pair fell in Y75,70 area.
US data starts at 1230GMT with Personal Income & Expenditures data as well as the Employment Cost Index. Personal income is expected to rise 0.4% in September, as payrolls rose 103,000, hourly earnings rose 0.2% and the average workweek rose to 34.3 hours. PCE is forecast to rise 0.6%. Retail sales rose 1.1% in the month, and were up 0.6% excluding motor vehicle sales. The core PCE price index is expected to rise 0.1%. The Employment Cost Index is expected to rise 0.6% in the third quarter after the 0.7% rise in the second quarter. At 1355GMT, the Michigan Sentiment Index is expected to be revised up to a reading of 58.0 in October from the preliminary estimate of 57.5.