CB Consumer Confidence on Tap
December 29th, 2009 Posted in Daily Forex News
Name: Dan
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Slow holiday trading today may be punctuated by several news events out of Europe and America. These events could create volatility in an otherwise dull market.
All Day EUR German Prelim CPI
-This event is listed as “All Day,” because it is a preliminary report based on data from 6 German States, before the actual report set to be released in 15 days. Still, this report is the earliest indicator for consumer inflation among the Eurozone countries. Consumer inflation influences interest rates which have a play a direct role in how currencies are priced.
-Last month’s result of -0.1% in consumer inflation caused the Euro to drop slightly, as it showed that Germany still had a way to go before economic recovery came.
-Analysts this month are predicting a significantly better figure of 0.6%. If the predictions come true, the Euro may see some gains in trading today. If the figure comes in at lower then expected, USD could advance further against the Euro.
15:00 GMT USD Consumer Confidence
-The U.S. Consumer Confidence Report is a survey of 5,000 American households, asking people to rank how they feel about a series of economic indicators in the U.S. The survey is a very good indicator of the economic sentiment of the American people, and often impacts the Dollar.
-Last month’s figure of 49.5, was slightly higher then expected, and contributed to the recent upswing seen by the Dollar.
-This month, analysts are predicting an even higher number of 53.0. A figure at or above this level will likely result in an increase for the Dollar, while a result below 53 may cause the Dollar to go down in trading.
