US consumer confidence drops to 79.9 points. The University of Michigan’s preliminary consumer confidence figure for March was expected to advance from 81.6 (revised up from 81.2) to 81.9 points. This is a small disappointment. Inflation expectations remain unchanged at 3.2%.
Towards the release, EUR/USD was strengthening once again above 1.39, while GBP/USD was on the back foot, falling to 1.66 and below. USD/JPY traded around 101.40. After the release, EUR/USD extends the rise to 1.3910 and GBP/USD recaptures 1.66.
The current conditions sub component advanced from 95.4 to 96.1 points. 5 year inflation expectations remain unchanged at 2.9%.
Earlier, US Producer Price Index came out below expectations, falling 0.1% in February. Core PPI dropped by 0.2%. They were both expected to rise.
Events in Ukraine and negotiations between the foreign ministers of the US and Russia in London grabbed the headlines, towards a referendum in Crimea over the weekend and rumors that Russia may invade eastern Ukraine.
As the week comes to an end, we already have the fresh forex weekly outlook awaiting.
