- Worst slump in confidence since August 2011 – the last near-breach of the US debt limit.
- Components suggest that confidence is eroding for the rest of 2013.
- US Dollar sees temporary losses against the Yen
US consumer confidence had its biggest drop in over two years, as the US government shutdown for the first time since 1996/1997. The release aligns neatly with the idea that the US economy had started to slow by the end of the summer; and now fears that the government shutdown would further weigh on the economy have been realized.
- Consumer Confidence (OCT): 71.2 versus 75.0 expected, from 80.0 (revised higher from 79.7).
- Expectations (OCT): 71.5 from 84.7.
USDJPY 1-minute Chart: October 29, 2013
Charts Created using Marketscope –
The US Dollar saw a small and temporary decline against the Japanese Yen following the release, before quickly paring the losses. The 200-day moving average may be providing support at 97.43, while USD/JPY may see resistance by a monthly high at 99.00.
--- Written by Christopher Vecchio, Currency Analyst
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