Release Explanation: A survey of the sentiment of the public regarding current and future economic conditions which builds an economic picture of the mood of the economy’s consumer and therefore how well the Service based economies may fair over the coming months. Retail Sales, New & Existing Home Sales, CPI, Durable Goods, GDP over a period of time if a constant trend is being built. A currency will eventually be affected by these numbers, but only once they filter through to the main releases.
Trade Desk Thoughts: The Reuters/University of Michigan preliminary index of consumer sentiment climbed to 56.6 this month from 56.3 in February, after reaching a 28-year low of 55.3 last November.
The numbers indicates consumers are nervous, said Matthew Carniol, chief currency strategist at TheLFB-forex.com. If employment and housing prices continue to worsen, the risk is that the spending numbers will turn lower again after showing early signs of stabilization in January and February.
The expectations index, regarding conditions for six months from now, increased to 53 from 50.5. Economists watch this index to gauge spending. The current conditions index dropped to 62.3 from 65.5 as unemployment rose.
Consumers see a higher rate of inflation over the next year; expectations rose to a 2.2% inflation rate over that time from the 1.9% seen in February.
Forex Technical Reaction: The S&P moved toward the daily low after the report and has so far found support. Currencies remain within a tight range.