The figures covering the levels of Durable Goods said to be ordered by American consumers over the month of July are set to be issued today 26 August 2013. Analysts note that this report details the sales of items such as electronics, vehicles, and other goods that consumers are generally considered to purchase when they feel higher levels of confidence in their fiscal stability. This is to say that a family that is unsure of its financial future will likely hold off on making big ticket buys for goods that they expect to last for longer periods of time unless they believe that they will be able to first provide for more immediate needs such as food and housing.
Therefore, many economists often look to this report for indications on the level of confidence in the economy, searching for data that points to whether consumers are prepared to make these secondary expenditures.
At this time, many experts believe that the report for July 2013 will likely show a minor decline in the sale of Durable Goods, hovering around the previous levels. That said, analysts believe that due to the recent string of positive job numbers and other reports, next month’s report covering August may rise.
Analysts advise caution in trading the USD at this time as the market may respond with volatility following the issuance of the report.
American Consumer Confidence to be Issued Tomorrow
In more news covering the indicators of the US economy, the Consumer Confidence report is due to be released tomorrow 27 August 2013. The report issued by the US based Conference board will cover the past month of August, detailing the feelings on the economy by way of thousands of surveys that are filled out by consumers. An important element in this report is that of consumer spending, a factor that economists rely on to indicate whether consumers believe that their immediate economic future is secure enough that they can make the said expenditures while still providing for their basic needs.
Analysts remind readers that while this is a closely watched report, many experts will also be awaiting the University of Michigan report which is considered to be less volatile, as well as more timely.
At this time, many experts believe that the Consumer Confidence report for August will show a slight decline. This may be based on how consumers feel about their job security and their prospects for employment in the near future. That said, confidence levels are relatively high at this point, so a small decrease is unlikely to shake the markets significantly.
While there is unlikely to be much of a backlash in the markets following the issuance of this report, investors are still advised to proceed with caution in trading the USD against its rival pairings.
US Dollar Retains Low Numbers Amidst Speculation on Fed
It was reported today 26 August 2013 that the US dollar continued a set of losses against the Euro following last week’s reports that the Federal Reserve will begin to cut into its $85 billion stimulus activities that have been in place to help buoy the American economy through the recession. Analysts point to concerns by investors as to whether the US economy is in fact strong enough at this time to support the reduction in government spending.
As has been stated in the past, the level of cuts to the quantitative easing measures will be dependent on the state of employment in the US, a point that Fed Chairman Ben Bernake has stated many times. Analysts believe that the move by the Federal Reserve which may come as soon as September will likely be measured, and carried out in steps so as to help minimize damage to the economy.
Analysts advise traders to continue to trade carefully with the USD in the coming weeks while the markets begin to adjust to the new changes from the Fed. That said, should the US succeed in absorbing the shifts, the USD will likely enjoy a rise in value, beating out previous levels.