FX Daily Wrap Up
Endless wave
In what appears to be an endless wave of negative US news, today followed suit with the March Consumer Confidence index printing a 107.2 which is 3.6% lower than the estimates. The Consumer Confidence survey measures a monthly survey of 5000 households to ascertain the level of consumer confidence. The report can occasionally be helpful in predicting sudden shifts in consumption patterns, though most small changes in the index are just noise. It is important to note that only index changes of at least five points should be considered significant. The index consists of two sub-indexes, consumers' appraisals of current conditions and their expectations for the future. Expectations make up 60% of the total index, with current conditions accounting for the other 40%. The expectations index is typically seen as having better leading indicator qualities than the current conditions index. What today’s release did to the markets is drop the Dollar further against the majors. Just after the announcement the EUR/USD pushed to a high of 1.3366, then fell only slightly from that high to the current 1.3346. Against the Pound the US Dollar made slight gains from an early morning high of 1.9696 then finished out the American session at 1.9655. In the news tomorrow we have the release of the Durable goods Orders and Initial Claims, which are two highly popular indicators.
Have a great evening!
David Hilgeman XPRESSTRADE Analysis
In what appears to be an endless wave of negative US news, today followed suit with the March Consumer Confidence index printing a 107.2 which is 3.6% lower than the estimates. The Consumer Confidence survey measures a monthly survey of 5000 households to ascertain the level of consumer confidence. The report can occasionally be helpful in predicting sudden shifts in consumption patterns, though most small changes in the index are just noise. It is important to note that only index changes of at least five points should be considered significant. The index consists of two sub-indexes, consumers' appraisals of current conditions and their expectations for the future. Expectations make up 60% of the total index, with current conditions accounting for the other 40%. The expectations index is typically seen as having better leading indicator qualities than the current conditions index. What today’s release did to the markets is drop the Dollar further against the majors. Just after the announcement the EUR/USD pushed to a high of 1.3366, then fell only slightly from that high to the current 1.3346. Against the Pound the US Dollar made slight gains from an early morning high of 1.9696 then finished out the American session at 1.9655. In the news tomorrow we have the release of the Durable goods Orders and Initial Claims, which are two highly popular indicators.
Have a great evening!
David Hilgeman XPRESSTRADE Analysis
posted by XPRESSTRADE, LLC at 3/28/2007 06:22:00 AM
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