Global macro overview for 01/05/2017:
The US Personal Income and Spending data are scheduled for release at 12:30 pm GMT today and it will be one of the key events of the day. Market participants expect an increase in spending from 0.1% to 0.2% for the reported month, while the personal income should remain stable at the level of 0.4%. Nevertheless, the economic growth in the first quarter decreased by 0.7% at the slowest pace in three years, partially due to the sharply softer consumer spending. Moreover, the Personal Consumption Expenditures increased just 0.3% in the first quarter - the smallest increase since 2009. In conclusion, today's data might disappoint market participants, however, a decrease in both personal spending and personal income should remain moderate.
Let's now take a look at the SPY index (SP500 ETF) technical picture on the H4 timeframe. The price is trading above all moving averages in a narrow range between the levels of 237.28 - 239.42. The most important support lies at 237.28 as any violation of this level will open the road towards the level of 235.74. The trading conditions are slightly overbought, so the bias remains to the downside during this week.
