Consumer confidence joins retail sales and drops sharply. The number is 93.6, much lower than expected. Could it be the bounce back in oil prices. Inflation expectations have gone up to 2.8% instead of 2.5% last time.
The dollar falls: EUR/USD is climbing back up to 1.1414, GBP/USD is above 1.54 and USD/JPY trades under 119.
Current conditions are at 103.1 points, down from 110. Expectations leave more to be desired with 87.5 instead of 92.2 points.
The University of Michigan / Reuters consumer confidence polls was expected to remain unchanged and follow last month’s 98.1 points.
The dollar was attempting some sort of recovery but remained on the back foot towards the publication.
Yesterday’s disappointing retail sales numbers hit the dollar hard. There seems to be a widening disconnect between rising confidence and actual sales. While part of the fall in the volume of sales is attributed to lower gasoline prices, the rest of consumption is not really rising.
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