The latest data from the U.S. regarding jobs and income exceeded expectations, boosting the markets after a weak start this week. Following the release, the S&P500 index went up, while the USD reversed downwards.
Weekly Initial Unemployment Claims in the U.S. fell to 210K, renewing 40+ year lows once more. Continued Claims is also at low levels last seen in the mid-1970s.
Markets have also been affected by solid data regarding Personal Income and outlays in the United States. Disposable Personal Income went up by 0.9% in January, the highest it has in a year. Outlays went up by 0.2% in January, an increase that was expected and was not received as particularly bad news.
Savings to Income ratio, which had been in decline for the most part of last year, reaching a pre-crisis low of 2.5% in December, grew to 3.2%. Low savings is often considered a bad signal for the economy, pointing to possible growth challenges, which makes the jump to 3.2% quite a good signal for the markets.