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US Dollar Drops as Consumer Confidence Falls

January 29, 2013 at 15:32 by Miranda Marquit

Great Seal of the United States on one-dollar billUS dollar is broadly lower today, losing ground today as the macroeconomic picture internationally is at odds with the latest economic data out of the United States.

The macroeconomic picture continues to be somewhat encouraging, with China showing that it is ready to pick up the economic pace, and with the situation appearing to improve in the eurozone, thanks to the fact that Germany appears ready to lead the way once again. With that in mind, one turns to the United States, and continues to see concerns about whether the economic recovery is really ready to take hold.

Indeed, the latest consumer confidence numbers dropped in January, moving to the lowest level since November 2011. Concerns about the economy are weighing on consumers, particularly as they contemplate upcoming battles in Congress over the debt ceiling and fiscal cliff spending. Additionally, the recent return to normal for the payroll tax is affecting many consumers.

For now, US dollar is broadly lower. However, if concerns continue to weigh, the greenback could gain the upper hand as Forex traders turn to the currency for safe haven and stability.

At 15:30 GMT EUR/USD is up to 1.3487 from the open at 1.3455. GBP/USD is up to 1.5767 from the open at 1.5696. USD/JPY is down to 90.7200 from the open at 90.8700.

If you have any questions, comments or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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