Today we have the release of Consumer Confidence report data, from the U.S. Conference Board. Considering the U.S. relies so heavily on consumers for generating economic growth, the recent growth forecast revision from the International Monetary Fund was another blow to growth prospects. The Federal Reserve have attempted to stimulate consumer spending through an extremely accommodative monetary policy, the results today will reflect the success of that policy stance.
Trading Event: Conference Board Consumer Confidence report, 1400 GMT.
- April’s consumer sentiment report reached its highest level since the recession, reaching 83 based on strength in the employment market.
- Evidence of an increase in consumer confidence can be seen in the housing market with more access to credit, consumers are more willing to make larger purchases- which they tend to do when they are feeling optimistic about the economy.
- The forecast for the Consumer Confidence report today is 83.6 up from the 83 posted last month, indicating growing confidence in the economy.
- Banc De Binary analysts predict that there will be an increase in consumer confidence this month, indicating a potential upward movement in the USD/JPY.