CB Consumer Confidence Report
March 30th, 2009 Posted in Market Movers
Much attention will be paid to U.S economic data this week, including the Conference Board’s consumer confidence index for March, due to be released this Tuesday. The Consumer Confidence Index (CCI) is a monthly release from the Conference Board, a non-profit business group that is highly regarded by investors and the Federal Reserve.
CCI is a unique indicator, formed from survey results of more than 5,000 households and designed to gauge the relative financial health, spending power and confidence of the average consumer. In February, the U.S Consumer Confidence index hit an all time low reading of 25. Economists are forecasting an increase to 28 in March, based on small improvements seen in more frequent temperature-takings, such as the daily Rasmussen index.
The CB Consumer Confidence Index is thought to be a leading indicator of consumer spending, with current attitudes understandably negative in light of rising unemployment, large corporate lay-offs, and the difficulty of finding new jobs. Consumer spending, which accounts for over 2/3 of U.S. domestic economic activity, fell at a 4.3% annual rate in the fourth quarter, the biggest decline since 1980. Spending dropped 3.8% in the July-September period.
What does this mean for the U.S. Dollar against other major currencies such as the EUR? The USD has shown amazing strength in recent weeks; though much of that could be coming from increased demand as securities and other assets were being sold off. A strong Consumer Confidence report, especially at a time when the economy is lagging behind estimates, can move the market by making investors more willing to purchase USD. However, if the data drops lower than expected, the U.S currency could well be the under-performer of the week.
Start trading with Natalie R. now:
Tags: CB Consumer Confidence, consumer report, Consumer Spending, Forex, forex blog, forex forecasts, Forex Strategies, indicator analysis, USD Trading, USD/EUR
