We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Mixed
USD/JPY
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Forex News: USD/JPY Slightly Lower as US Confidence Plummets

Forex News: USD/JPY Slightly Lower as US Confidence Plummets

2012-01-29 16:02:00
Christopher Vecchio, CFA, Senior Strategist
Share:

THE TAKEAWAY: USD Consumer Confidence (JAN) > 58.6 versus 64.0 expected, from 66.7 (revised from 65.1) > USDJPY BEARISH

The fiscal cliff deal reached by US politicians has already delivered its first victim: the US consumer. Higher payroll taxes levied across the board damaged sentiment across all income classes above $15K/year, while consumers of all age groups – in particular the under 35 demographic – saw a significant drop in confidence. The index’s drop to 58.6 in January from a revised 66.7 in December dragged sentiment to its weakest level since November 2011 – right after the Euro-zone crisis started to accelerate again, before the European Central Bank poured over €1 trillion into the region’s banks over the ensuing three months.

This may not be the floor in US consumer sentiment, either. The upcoming budget sequesters – $1.2 trillion in automatic spending cuts on domestic programs and defense – is still on slate for early-March. Neither Democrats nor Republicans have offered any indication that a deal would be reached to avoid what would be an economic disaster for the US economy, with Republican budget architect Representative Paul Ryan (R-WI) going so far as to say that “I think the sequester is going to happen.”

USDJPY 1-minute Chart: January 25, 2013

Forex_News_USDJPY_Slightly_Lower_as_US_Confidence_Plummets_body_x0000_i1027.png, Forex News: USD/JPY Slightly Lower as US Confidence Plummets

Charts Created using Marketscope – Prepared by Christopher Vecchio

In reaction to the data, the Japanese Yen gained across the board, with the USDJPY sliding ahead of the release from 90.74 to as low as 90.52. At the time this report was written, the USDJPY had rebounded back to 90.95.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.