The US dollar edged slightly lower this morning on the release of the Conference Board's consumer confidence survey, which reflected its worst readings since record-keeping began in 1967. Indeed, the index plunged to 38.0 in December from 47.7, with a breakdown of the survey showing a gloomy picture of the US economy. Consumers judged that business conditions had worsened, and that employment had been either less plentiful or just plan hard to get. This data suggests that consumption is bound to weaken further in coming months, and also that the January 9 employment reports are bound to be disappointing. Nevertheless, the impact on the US dollar may be limited as the Federal Reserve has already brought interest rates to record lows, leaving the central bank with little room for maneuver.
Conference Board Consumer Confidence Index (Monthly)

Source: Bloomberg