* US Personal Income falls 1.3% in June reversing May’s similar rise.
* US Consumption rises 0.4% in June due to rises in gasoline and food,but Real spending falls 0.1%
* US Core PCE price index falls to 1.5% y/y in June.
* US Pending Home sales rise 3.6% in June, much stronger than expected.
* Canadian FinMin Jim Flaherty takes issue with C$ strength
An interesting session that not surprisingly didn’t live up to the fireworks from the two previous days. Europe was pretty subdued with a small emphasis on Risk on profit taking and was enhanced by the disappointing income and expenditure data. This didn’t last too long after an impressive rise in the Pending Home Sales index. Eur/Usd posted its high for the day at 1.4432, but this didn’t last long as longs took advantage of the rally to shed some of their exposure. The fact that the rally was so brief on such good data was disappointing to many and saw us dip below 1.4400. Sentiment wasn’t helped when Canadian Finance Minister Jim Flaherty warned against excesssive C$ strength.
