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USD correction shrieks to a halt after weak consumer

When the CB consumer sentiment hit new highs back in December, then President-Elect Donald Trump took credit for it, saying “Thanks Donald”. Will he be wary of the current figures in showing  a worsening mood among consumers?

The University of Michigan’s first consumer sentiment report after Trump came into the White House shows a drop from 98.5 to 95.7 points, much lower than 97.9 expected.  This is the preliminary release for the month of February.

The Current Conditions number dropped to 111.2 and Expectations fell to 85.7 points. Only inflation expectations actually went up to 2.8%.

The US dollar also reacted negatively. The drop in EUR/USD reversed and the pair enjoyed a bounce. The world’s most popular currency pair had  already come within a touching distance from 1.06 and now trades above 1.0635.

USD/JPY finds support at 113.40 before bouncing. GBP/USD trades around 1.2470.

The US dollar will likely be influenced by the visit of Japanese PM Shinzo Abe in the US. A series of meetings is planned for the two leaders in the White House and also in Florida.

More:  EUR/USD: Despite political risks, parity chances are all but gone [Video]

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.