The euro opened at 1.3613 (8:00 am) having traded in a 1.3799-1.3617 range in Tokyo and London. In early New York trading the united currency dipped to 1.3606 but the April personal income, personal spending and PCE deflator releases at 8:30 am brought the dollar to offer.
Personal income was as expected at 0.3% but spending missed at -0.1% vs. 0.2%; PCE came in as forecast at 0.2% m/m, 1.6% y/y, core 0.2% m/m, core 1.4% y/y. From 8:30 am to about 9:30 am the euro ascended from 1.3607 to 1.3636 in a series of sharp moves with pauses just below 1.3620 and 1.3630. From then until 9:55 am it retreated to 1.3617 helped by better than expected Chicago PMI at 9:45 am (65.5 vs. 61.0). The May University of Michigan consumer confidence number at 9:55 am (81.9, expected 82.5) reversed the limited euro fall and brought it to the day's high at 1.3650 within an hour just over the 200 day moving average of 1.3647. A dip to 1.3633 found buyers but the engery was limited and 1.3644 was the high.
Next week's ECB meeting on Thursday, with some sort of action all but promised by President Mario Draghi may induce euro shorts to some minor profit taking early next week. But until the policy decision is know, strong euro buying is unlikely to emerge. The euro closed at 1.3635.