With a slow trading day expected today, investors will likely keep there eyes on the U.S. Dollar and whether it can maintain its recent upswing going into the New Year. Set to be released later today, the U.S. Consumer Confidence report should give traders a good idea about the general direction of the greenback as 2009 draws to a close.
USD - Consumer Confidence Report Likely to Impact Greenback
Light trading on Monday, mainly due to low liquidity in the market, gave the Dollar a slight advantage over its major counterparts. After breaching the 1.4400 level against the Dollar yesterday, the Euro subsequently fell and is currently trading at the 1.4365 level. Against the Yen, the greenback advanced slightly, and is now trading around the 91.75 level.
Traders should note that most analysts do not see these Dollar increases as signs of a continued trend. With many investors on vacation for the holidays, USD gains may have just been a result of low liquidity and a slow news day on Monday. Traders will want to pay attention to the U.S. Consumer Confidence report set to be released at 15:00 GMT today.
A higher number then last month is forecasted for the report, which if indeed comes true, will likely support the Dollar. Most analysts are saying that the American people are slowly regaining faith in the U.S. economy. If the consumer confidence figure reflects that sentiment, it could be an early sign as to where the Dollar is headed in 2010.