Latest Market News: 3rd July 2023
While US consumer spending on services was way up in May, the reverse was true of goods spending. It looks as though necessary health expenses primarily drove increases, with travel helping. Meanwhile, spending on goods that could be delayed, such as for motor vehicles and spare parts fell significantly.
The US dollar showed strength last Friday and has since stabilized. The release of better-than-expected data from the US contributed to a significant 15 basis point increase in the 2-year US Treasury note yield. This movement marked the largest one-day change since the robust Non-Farm Payrolls (NFP) report at the beginning of June.
The Dollar Index drifted lower after the Federal Reserve’s gauge of inflation slowed. At the close of trade on Friday, the USD/DXY settled at 102.90, down from 103.35. The US Core PCE rose 0.3% in May, down from April’s 0.4%, and matching expectations.
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