Personal income in the US increased by 1.9 percent! A surprise overshoot from expectations of only a 0.4 percent rise.  Consumer spending also increased by 0.8 percent, rising slightly above expectations of a 0.7 percent rise.

This looks like the impact of those economic stimulus checks that started going out in early May.  It will be interesting to see if consumer spending can continue to maintain it’s current levels given the extreme pessimism of the US consumer.

The US Dollar reaction was mostly muted as most market participants were expecting a blip from the stimulus checks. The dollar continues to stay in recent ranges while threatening to break range lows.