FX.co ★ Fundamental Analysis, February 1, 2011

On the United States macroeconomic front, private consumption grew faster than expected in December, completing the best quarter in the last four years. Personal income grew in December as well, completing the second month of growth rising. The Department of Commerce reported yesterday that private consumption grew by 0.7% last month after 0.3% growth in November. The rise also outdid analysts’ predictions of a 0.6% rise. Personal income grew 0.4%, as predicted.

Also on the macroeconomic front, ISM reported yesterday that the procurement managers' index for Chicago rose to a level of 68.8 points this month – the highest level since July of 1988. We note that any reading over 50 points shows an expansion of activity, while a reading under that level reflects a contraction of activity.

On the New York Commodities exchange, crude oil futures for March leaped up by 3.2%, locking at a price level of 92.20 United States dollars per barrel, the highest close since October 2008. The leap in oil prices has been recorded based on concerns that the uprising in Egypt will harm the passing of oil and other goods through the Suez Canal.