USD remains strong as Consumer sentiment figures disappoint

Published: Friday, 18 January 2013 18:00 BST - Written by Frank Davies

STORY LINK USD remains strong as Consumer sentiment figures disappoint

The ‘Greenback’ has made gains against the majority of its most traded peers due to yesterday’s US Unemployment figures coming in at a five-year low. Its gains were limited however due to a disappointing manufacturing report. The latest US Prelim University of Michigan Consumer Sentiment figures came in at their lowest level in two years, indicating a continued dampening in optimism over the state of the world’s biggest economy.

The preliminary reading of the January consumer sentiment index was below expectations, coming in at 71.3 compared to 72.9 in December's report. January's flash reading was the lowest since December 2011. The index came in at 87.7 in November and 82.6 in October. The ‘Greenback’ remains strong against most of its currency rivals due to the release of worse-than-expected industrial production data from the Eurozone. The disappointing data led to an increase in demand for the safe-haven Dollar.

Against the Japanese Yen, the Dollar hit a new two-and-a-half year high as the Asian nation begins to implement additional monetary easing measures.


The ‘Loonie’ rose from a two-week low against the US Dollar due to government data bolstering the growth prospects for the world’s biggest economy and Canada’s main trading partner. The currency was boosted by an increase in the price of crude oil.

The Rand has weakened for a second day and is set for its third straight weekly decline. Concerns that labour protests in mining and agriculture will curb exports and slow growth in Africa’s largest economy has weighed heavily on the currency.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Australian Dollar Forecasts Canadian Dolla Forecasts