US Government Shutdown Sinks October Consumer Confidence, Dollar Slides Temporarily
- 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 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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