USD Correction Shrieks To A Halt After Weak Consumer Sentiment

Feb 10, 2017 at 10:42 AM EST

The University of Michigan’s first consumer sentiment report after Trump came into the White House shows a drop from 98.5 to 95.7 points, much lower than 97.9 expected.

When the CB consumer sentiment hit new highs back in December, then President-Elect Donald Trump took credit for it, saying “Thanks Donald”. Will he be wary of the current figures in showing a worsening mood among consumers?

The University of Michigan’s first consumer sentiment report after Trump came into the White House shows a drop from 98.5 to 95.7 points, much lower than 97.9 expected. This is the preliminary release for the month of February.

The US dollar also reacted negatively. The drop in EUR/USD reversed and the pair enjoyed a bounce. The world’s most popular currency pair had already come within a touching distance from 1.06 and now trades above 1.0635.

Disclaimer:

Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk appetite and the trader's level of experience should be carefully weighed before entering the Forex market. There is always a possibility of losing some or all of your initial investment / deposit, so you should not invest money which you cannot afford to lose. The high risk that is involved with currency trading must be known to you. Please ask for advice from an independent financial advisor before entering this market. Any comments made on Forex Crunch or on other sites that have received permission to republish the content originating on Forex Crunch reflect the opinions of the individual authors and do not necessarily represent the opinions of any of Forex Crunch's authorized authors. Forex Crunch has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: Omissions and errors may occur. Any news, analysis, opinion, price quote or any other information contained on Forex Crunch and permitted re-published content should be taken as general market commentary. This is by no means investment advice. Forex Crunch will not accept liability for any damage, loss, including without limitation to, any profit or loss, which may either arise directly or indirectly from use of such information.