CB U.S. Consumer Confidence (May) Actual 54.9, Expected 42.7, Previous 40.8 

Release Explanation: This is the Conference Board's survey of consumer confidence regarding current and future economic conditions. “The survey, based on responses from about 5000 households, 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, and GDP will be affected 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”, TheLFB-Forex.com Trade Team said.

Trade Desk Thoughts: Consumer confidence, which had improved considerably in April, posted another large gain in May, the Conference Board said today.

The index rose to 54.9, up from April's 40.8. The Expectations Index increased to 72.3 from 51.0 while the Present Situation Index increased to 28.9 from 25.5.

Consumers' assessment of overall current-day conditions improved again. Those claiming business conditions are good rose to 8.7% from 7.9%, while those claiming business conditions are bad increased to 45.3% from 44.9% last month.

Consumers' short-term outlook improved significantly in May. Consumers expecting business conditions will improve over the next six increased to 23.1% from 15.7%, while those anticipating conditions to worsen declined to 17.8% from 24.4% in April.

The employment outlook was also less pessimistic. The percentage of consumers expecting more jobs in the months ahead increased to 20.0% from 14.2%, while those expecting fewer jobs decreased to 25.2% from 32.5%. The proportion of consumers expecting an increase in their incomes edged up to 10.2% from 8.3%.
 
Forex Technical Reaction: Stocks increased dramatically after the release with the DOW hitting triple digits and the S&P adding 10+ points after the release. The dollar has declined across the board since the release.