Consumer activity in the United States is expected to remain buoyant in the third quarter of this year, with a further forecast of 0.1 percent m/m increase in August personal spending following July’s 0.3 percent rise.
However, the annual increase in the consumer expenditure deflator, the Fed’s preferred measure of inflation, is expected to be only slightly higher at 1.5 percent. The US dollar headed for its best week this year, in part driven by expectations that US tax reforms could provide some support to economic growth.
Over the weekend, a couple of political events bear watching. The Conservative Party Conference begins on Sunday, while in Spain, the Catalonian region will hold an independence referendum, also on Sunday.
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