The US Dollar strengthened against the Pound and made gains against the Euro after the latest US consumer confidence Index declined more than forecast in July as Americans grow pessimistic about the economy.
Lynn Franco, Director of Economic Indicators at The Conference Board said: “Consumer Confidence fell slightly in July, precipitated by a weakening in consumers’ economic and job expectations. However, confidence remains well above the levels of a year ago.
‘Consumers’ assessment of current conditions continues to gain ground and expectations remain in expansionary territory despite the July retreat. Overall, indications are that the economy is strengthening and may even gain some momentum in the months ahead.”
According to the Conference Board’s index, sentiment fell to a reading of 80.3 from the revised 82.1 in the previous month. Economists were expecting a figure of 81.3. Despite the fall, confidence levels remain well above the level recorded in the previous year.
The expectations index also dropped to 84.7 from 91.1. The gloomy outlook was not all encompassing however as the present situation index rising to 73.6 from 68.7, its highest level since May 2008.
“It reflects some of the volatility in financial markets over the last couple of months, particularly the rise in interest rates,” said Stephen Stanley chief economist at Pierpont Securities LLC in Stamford, said before the report. “To the extent that you’re paying attention and seeing rates are rising, that’s bad news if you’re looking for a mortgage or a car loan.”
The Dollar is expected to have a volatile session on Wednesday following the release of the Federal Reserve’s latest interest rate decision and the publication of other economic data.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6517
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7534
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.1027
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.1666
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0282
(Correct as of 16:00 pm GMT)
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