Friday, 26 Jun 2009

Consumer Sentiment on the Way, Will it Help the USD?

On a light news day like today, and at the end of a busy trading week, there isn't much to report at the start of US trading hours. Personal spending in the United States remained relatively stable from the last reporting period, while private income apparently rose 1.4%. This foreshadows the impending release of the Revised UoM Consumer Sentiment report due at 13:55 GMT.

If the market optimism shown in the UoM report for the previous 3 months continues, we could see a rally in the USD towards the end of the day. However, if this optimism falters due to the Fed's and Bernanke's recent statements on interest rates and the Merrill Lynch acquisition hearings, we could see the EUR and GBP continue their bullish momentum against the Dollar.