INSTANT VIEW: U.S. personal spending rises in April

NEW YORK (Reuters) - Personal spending rose by 0.2 percent in April as forecast and a key measure of inflation moderated, government data on Friday showed.

KEY POINTS: * Personal spending, under scrutiny as a barometer of how consumers are faring as the U.S. economy cools, had risen by 0.4 percent the previous month. * The Commerce Department said that personal income was up 0.2 percent in April, also matching forecasts, following an upwardly revised 0.4 percent increase in March. * This was previously reported as a 0.3 percent rise. But adjusted for inflation, income stagnated in April for the second straight month. * The overall personal consumption expenditures price index was up 0.2 percent in April from a 0.3 percent increase the month before, the Commerce Department said.

COMMENTS:

MICHAEL WOOLFOLK, SENIOR CURRENCY STRATEGIST, BANK OF NEW

YORK MELLON, NEW YORK:

"The focus right now is on oil prices which are a little bit higher on the day after breaking below $125 a barrel overnight. We have seen however, a GDP report from Canada that was much weaker than expected for the first quarter which has pushed the dollar higher against the loonie. The U.S. data on personal income and spending is in line with expectations broadly. Core inflation figures remain under control. The personal income and spending report is unlikely to have much impact on the dollar however it fits in nicely with recent data reflecting a bottom has been put in for the dollar."

MARKET REACTION: * BONDS: U.S. Treasury debt prices extend gains * CURRENCIES: U.S. dollar rises versus yen and euro * STOCKS: U.S. equity index futures add to gains * RATE FUTURES: U.S. short-term interest rate futures were unchanged, pricing in a 2 percent probability of a 25 basis point rate cut at the Fed's June meeting.

POLL STORY: US April personal spending seen up 0.2 pct