U.S. Dollar Rallies as Consumer Confidence Improves
July 29, 2008
U.S. consumer confidence rose to 51.9 in July after tumbling to its lowest level in 16 years during June. While the modest improvement in expectations may be attributed to decreasing oil prices, consumers’ assessment of current conditions remained unchanged. The outlook continues to “be very pessimistic”, primarily due to bleak labor market conditions. However, with consumer confidence showing signs of rebounding from its recent decline, the U.S. dollar staged a 1.3% rally against the Euro.