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Consumer Confidence in U.S. Sinks Dollar

February 26, 2008 by

Today dollar continued its bearish trend against euro and pound, sliding down significantly after the consumer confidence release. Both EUR/USD and GBP/USD were going for correction after the better than expected PPI report, but started to return to their earlier positions in shortly after the Conference Board’s release.

Producer Price Index (PPI) gained 1.0% in February — a significant value for a one month change, after 0.3% fall in December and with only 0.4% gain forecasted for this month. Core PPI increased 0.4% — also higher than analysts’ forecast (0.2% growth).

Consumer confidence index in February dropped to 75.0 from 87.9 in January. That’s a rather horrible result — except of the period of Iraqi War in 2003, consumer confidence is now at its record low value since November 1993. Time to use the R-word again?

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