Friday, 14 Aug 2009

U.S Consumer Sentiment Likely Rose this Month

In today's early trading, the USD was able to trim some of its losses against the EUR ahead of the UoM report that is expected to show confidence among U.S. consumers gained this month, adding to signs the recession in the world's largest economy is coming to an end.

Putting further pressure on the EUR was the release of worse than expected CPI numbers. While The European Union's statistics office said yesterday GDP in the region fell 0.1% last quarter, mostly due to the expansion in German and French GDP, following a 2.5% decline in the previous three months, a report today showed consumer prices in the Euro-Zone dropped 0.6% in July. The report may suggest deflation is becoming deep-seated in the Euro-Zone, which would be very bad for the economy

Today the NY market will open with another flow of economic data from the U.S with Core CPI due to be released at 12:30 GMT and the Prelim UoM Consumer Sentiment report and Industrial Production due at 13:55 GMT being the most influential. As was seen yesterday, the Dollar's trend throughout the recession of gaining on poor economic data and falling on better than expected data is starting to fade. Therefore, poor results will likely continue putting downward pressure on the Dollar.