Consumer Confidence Dips, Reflects Growing Concerns Regarding Coronavirus
- Consumer Sentiment fell to 79.2, vs. an expected reading of 80
- Reading reflects ongoing worry regarding rising cases, deaths in the United States
- Retail sales for December also declined, indicating widespread fears over short term prospects
US Consumer Confidence came in at 79.2 in the January preliminary reading, against an expectation of 80. The decline in confidence reflects a growing concern over the rising COVID cases in the United States, and the potential for lockdowns in the near future should the virus begin to spread out of control.
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The move in consumer sentiment follows a disappointing read on retail sales for the month of December, as retail sales fell 0.7%. Job numbers also disappointed, as unemployment claims totaled 965,000 for the week. Continued poor economic data has paved the way for the incoming Biden Administration to unveil a sweeping stimulus plan totaling $1.9 trillion.
In immediate trade, the US Dollar moved higher. Gold sold off in the aftermath of the report, slipping down to $1,834 per oz. Inflation expectations came in at 3% against a prior reading of 2.5%, as the Federal Reserve continues its efforts to support households, the broader economy, and capital markets.
US Dollar Index 1m Chart
Written by Brendan Fagan, DailyFX Intern
For more, connect with Brendan on Twitter@BrendanFaganFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.