US Personal Income data came in a tad lower than expected at flat for July but was revised higher for June. Consumption at up 0.2% was in line with forecasts, but June’s figure was revised higher to 0.6% from 0.4%. The notion that the US Consumer will start to save more, might start to be questioned as the savings rate fell once again to 4.2% in July from 4.5% in June. This may be caused by people deciding to dip into their savings to take advantage of the cash for clunkers initiative and the tax breaks for new home sales.
No real reaction on the currency markets.
