NFP is Key

Suddenly the picture is not so bright and sunny for dollar bulls. Confidence in the American dream is sinking despite generally positive ISM results that demonstrated both manufacturing and service sectors are humming along well above the 50 boom/bust levels. Despite that fact both Consumer Confidence Board and the U of M surveys showed large drops in consumer sentiment with the former falling to 101.7 from 106.8 in January and the later registering an 86.7 reading down from 87.5 the month prior. The feeling of foreboding pervaded the US consumer, perhaps spurred by the news that existing home sales fell for the fifth consecutive month and the great housing ATM which has served as the one true source of income at a time when wages growth has been stagnant, is finally running out of cash. Add to that mix gasoline inching towards the $3/gallon price point as oil trades at $64/bbl and its understandable why the US consumer is skittish.


-dailyfx.com