As I have explained before, there are some days when there is little of note in the FOREX world, so I get the chance to research a random economy somewhere in the world. Today (and I’m sure tomorrow) is not such a day. Everyone’s favorite superpower, the United States of America, came out with important economic data today, and will have even more important data tomorrow. US Consumer Confidence was lower then expected, and the lowest it has been since 1992. While some analysts are often critical of the fickle nature of this statistic, it nevertheless measures an important aspect of the market: what consumers are thinking about the economy. Partially as a result of this data, but mostly because investors are really waiting for tomorrow’s events, the US Dollar did little today.
A day after bad news came out of Europe’s largest economy, the second largest released better then expected data. Yesterday Germany announced that a measure of business confidence was lower than expected, but today Consumer Spending results in France surprised many by showing solid results. The Euro, like the USD, moved little today relative to the other major currencies. It is very likely that the news coming out of the US tomorrow (see below) will send currency pairs flying even if the USD is not in the pair. If the announcements fall into line as expected, the EUR should enjoy a good day as investors move away from the USD.
If you have an opinion about what the FOMC will say, tonight is a great time to get in before the market moves tomorrow. If you are unsure, I encourage you to try to find out what has been announced as soon as you can, and then look to jump on board if the market seems to be moving. Good luck!
EUR German Consumer Price Index (Jun)
EUR Italian Retail Sales (Apr)
USD Durable Goods Orders (May)
USD New Home Sales (May)
USD Federal Open Market Committee Decision @ 2:15PM EST
NZD Current Account Balance (Q1)
NZD Current Account Deficit — Gross Domestic Product Ratio (Q1)