US Dollar Slips As Consumer Sentiment Falls In June To Lowest in 2012
THE TAKEAWAY: [U.S. consumer sentiment declines in June to lowest this year] > [Slowing job growth and flagging stock values may dampen confidence] > [USD slips]
Confidence among U.S. consumers tumbled in June to its lowest level this year, snapping a nine-month climb that had seen sentiment rise last month to its highest level since October 2007. Final monthly readings indicated that the University of Michigan Confidence Index (MCSI) fell to 73.2 in June from its preliminary print of 74.1 and May’s reading of 79.3. The median forecast of 54 economists surveyed by Bloomberg News had called for a print of 74.1.
Consumer sentiment declined as the rate of job growth in the U.S. slowed for the fourth consecutive months and as wages failed to keep up with the pace of inflation. With Europe’s debt crisis dampening share prices, there is an increased risk that consumer spending will stagnate as households worry over dropping stock values and declining job growth. The decline in consumer confidence since its preliminary June reading follows the Federal Reserve’s monetary policy decision last week to hold its key interest rate while extending Operation Twist amid concerns of slower-than-expected U.S. growth.
AUDUSD 1-minute Chart: June 29, 2012
Chart created using Market Scope – Prepared by Tzu-Wen Chen
--- Written by Tzu-Wen Chen, DailyFX Research
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