US Dollar: Will Consumer Confidence Disappoint on Tuesday?
The US dollar ended the day up slightly against the euro and British pound, reversing sharp declines during the Asian and European trading session. However, the greenback ultimately ended the day down versus the Swiss franc, Japanese yen, and commodity dollars. Fundamentally, there was no news to speak of, but event risk will pick up on Tuesday, leaving potential for volatility to pick up a bit. At 9:00 ET, the S&P Case-Shiller Home Price Index for the month of October is anticipated to fall by a record 17.8 percent from a year earlier, highlighting the extent of the collapse in the US housing sector. At 10:00 ET, the Conference Board’s Consumer Confidence Index for the month of December is expected to edge up to 45.5 from 44.9. This would mark the second improvement in a row, but it’s necessary to keep these figures in perspective, as the record low of 38.8 going back to 1967 was just realized in October, down significantly from the index’s average of more than 100 throughout 2006 and 2007. Indeed, the outlook for consumption remains bleak, especially as aggressive discounting by retailers was not able to prevent holiday spending from slumping 4 percent in December from a year earlier (excluding gasoline), according to SpendingPulse.
Related Article: US Dollar Weekly Trading Forecast
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