Forex Blog

First-hand Forex trading experience and information about foreign exchange market that will be useful to traders


U.S. Consumer Sentiments at Highs While Dollar at Lows

July 13, 2007 (Last updated on November 30, 2009) by

Today the preliminary consumers sentiment index (by University of Michigan) came out showing surprisingly good results — 92.4 against 86.0 expected — a historically high level of consumers confidence which indicates an uptrend the economy of United States. While consumer sentiment index is at its highest levels, dollar is suffering a continuous EUR/USD rally which showed a new maximum (for more than ten years period) at 1.3813 level today. Perhaps, strong macroeconomic indicators from U.S. prevented EUR/USD from keeping above 1.3800 mark, but it can be broken again at any time soon. Some other U.S. statistics became available today — business inventories growth in May increased from 0.4% to 0.5% (while a growth slowdown to 0.3% was expected). Advance monthly retail sales for June came out unexpectedly bad — falling down by 0.9% (they were expected to remain intact) — which is quite strange considering the high consumers sentiment index.

Comments are closed.