As US consumer confidence went lower, forex dollar also took a turn for the worse as well. In November, consumer confidence in the US went down for the first time in five months, prompting the Conference Board to make a statement saying that confidence in the US fell to 88.7, which is a downward spiral in comparison to October’s 94.1. However, in later days, US consumer confidence increased, thus causing increases in the various foreign exchanges as well.
The Euro peaked at $1.2479 after the release of a lower consumer confidence hit the market. In October, the S&P 500 went ahead by 11% because of strong improvements in the US economy. In addition to the favorable S&P 500 rating, the central bank played its part in solidifying greater economic stimulus in the US during that time.
Meanwhile on the stock exchange, stocks rally to a high since 2009. Projected trading on the S&P 500 was at 17.2 times, which shows a multiple of 15.5 since last month, according to a Bloomberg data.
Forex companies such as iForex and others are waiting to see how things will play out between the EUR/USD and consumer confidence in the US before making any major speculations. Since forex companies have to assist their clients in making the right foreign exchange investments, it is to their best advantage that they wait and see which trend the market is taking.
The yen also experienced some setbacks after learning that consumer confidence weakened and went down to 117.82. On Tuesday, it was down by 0.29%. Mr. Haruhiko Kuroda, the governor of the Bank of Japan, made a statement concerning the yen by saying that declines that recently took place with the yen can have a positive and a negative effect. The positive side is that exporters can gain from it while on the negative front householders and local businesses can be affected in a bad way. Although the yen is having a bit of a problem showing a positive upside, still Mr. Kuroda made certain to stress that the economy is on the verge of achieving the inflation target of 2% that the bank has set down.
Although the yen experienced setback because of lower US consumer confidence circulating the forex market, still it recorded a high against the euro dollar (EUR/JPY), which was down by 0.43% to close at 146.51.
However, on Monday things changed as the euro went surging ahead of the yen and the US Dollar. The rise of the euro came about because of improved finances taking place in some German businesses, which ended the six straight months of decline taking place in that sector. This report came as a welcome boost to German business people’s confidence and might signify an end to some speculations in the market concerning the lessening of more measures already taken in the European Central Bank.
As pressure mounts up concerning the forex market in regards to US consumer confidence, investors are now trying to speculate an outcome. Still, with fluctuations taking place in the market, anything is possible at this time.