April Consumer Confidence Hits 14-month High, USD Pares Loss

By Trang Nguyen,

THETAKEAWAY: April U. of MichiganConfidence Final Index Rose to 76.4 > Americans AppearedOptimistic about the State of the Economy > USDPares Loss vs. Most of its Major Peers

Confidence among U.S. consumers hit fourteen-month high in April , reflecting their optimism about theprospective strength of the economy and rising expectations onbusiness conditions, employment and income. The Thomson Reuters/ University of Michiganfinal index mounted to 75.3 in April , just ahead of 76.2 in March and substantiallyabove last April’s 69.8. The figure topped the consensus forecast as sixty -one economists surveyed by Bloomberg News anticipated the print of 7 5.7 that was unchanged from a preliminaryreading.

The increase in confidence over the past sixmonths has been substantial, with the Sentiment Indexclimbing above the recession average of 69.3 but stillwell below the average of 88.1 for non-recessionary periods . Potential job gains and faster payroll growthcontributed to the gain in consumer sentiment this month. E conomic outlook index climbed to 72.3 from 70.3 while economic conditions index for April declined to82.9 from 86.0 in March. Additionally, i nflation expectations for one year ahead sharply fell to 3.2 percent this month from 3.9 percent in the previous month while the figurefor five years ahead also cooled down to 2.9 percent from 3.0 percent in March . Price pressure eased this month due to fallinggasoline costs.

USDCAD 1-minute Chart: April 27 ,2012

Chart createdusing Strategy Trader – Preparedby Trang Nguyen

The U.S. dollar tumbled versus most of itsmajor counterparts after the dismal Gross Domestic Product reportreleased at 8:30 A.M. EST today. The world’s largest economyunexpectedly expanded at annual pace of 2.2 percent in the firstquarter of 2012 compared to 2.5 percent predicted and 3.0 percentin the previous quarter. However, the reserve currency immediately pared loss versus most of its major peers in the m inutes following the better-than- projected consumer sentiment report . As seen from the 1-minute USD CAD chart above, the greenback edged up 20 pips from C$0.9805 toC$0.9825 within thirty minutes.

--- Written by Trang Nguyen, DailyFX Research Team for DailyFX.com

To contact Trang, email tnguyen@dailyfx.com
DailyFX is the forex news and research arm of FXCM, Inc (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

Original Article: http://www.dailyfx.com/forex/market_alert/2012/04/27/042712_U.of_Michigan_Confidence_April.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

More from Currencies

Bitcoin Today: Prices Continue to Slump Heading Into Weekend

Bitcoin Today: Prices Continue to Slump Heading Into Weekend

Bitcoin Today: Prices Continue Skid Toward $7,000 as DOJ Launches Investigation

Bitcoin Today: Prices Continue Skid Toward $7,000 as DOJ Launches Investigation

Bitcoin Today: Prices Plummet Below $8,000 in Market Downturn

Bitcoin Today: Prices Plummet Below $8,000 in Market Downturn

Bitcoin Today: Prices Slip as Broader Crypto Market Struggles to Make Traction

Bitcoin Today: Prices Slip as Broader Crypto Market Struggles to Make Traction

Bitcoin Today: Prices Attempt to Recover From One-Month Lows

Bitcoin Today: Prices Attempt to Recover From One-Month Lows