Weaker US Data Today Sending the USD Lower
The economic data from the US today has been pretty weak and it is hurting the market sentiment
We’ve had a number of economic indicators being released today from the US. The data was released for two months together due to the US government shutdown. Apart form the personal income which posted a big increase for December, all the other indicators came out softer than expected. Let’s have a look:
| US Economic Data | Actual | Expected | Previous |
| Core Price Index December | 0.2% | 0.2% | 0.2% |
| Personal Spending December | -0.5% | -0.2% | 0.6% |
| Personal Income December | 1.0% | 0.5% | 0.3% |
| Personal Income January | -0.1% | 0.3% | 1.0% |
| Final Manufacturing PMI | 53 | 53.7 | 53.7 |
| ISM Manufacturing PMI | 54.2 | 55.6 | 56.6 |
| UoM Consumer Sentiment | 93.8 | 95.8 | 95.5 |
| ISM Manufacturing Prices | 49.4 | 51.6 | 49.6 |
As you can see, all the figures are below expectations apart from the personal income for December which jumped higher, but I suppose that’s partly due to year-end bonuses. Personal income declined in January, although on the other hand, the government shutdown has also had some negative effect there.
The University of Michigan consumer sentiment indicator for February continues to show a weakening sentiment among the US consumer, while manufacturing keep softening since it peaked in Summer. I see that the US Fiat-Chrysler auto sales are down by 2.0% and Toyota sales are down by 5.2% against -2.5% expected. So, soft economic numbers all around from the US today and that is sending the Buck lower. Stock markets have reversed lower too while safe havens are benefiting as the sentiment is damaged by the softening economy.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals