Dollar trading lower against Yen, Euro. Chicago Business Barometer, UMichigan Consumer Confidence fall in February.

February 29, 2008 - Forex Economic News

The U.S. dollar today is capping off a rough week of economic releases and record lows with more gloomy economic news. The dollar hit a 3 year low against the Japanese Yen today while trading around the 1.5200 level against the euro after breaking the 1.5000 barrier on Tuesday for the first time in history.

Today, the Chicago Business Barometer reported that it had registered the lowest barometer scores since 2001 highlighted by declines in production, inventories and employment. U.S. Consumer spending data was released by the Commerce Department and showed that spending was higher(0.4 percent) in January but that inflation of prices(0.3 percent) negated the increases and Americans are spending more just to keep up with rising prices. Prices were 3.7 percent higher in January compared to January of last year.

The University of Michigan/Reuters consumer confidence survey also dropped in February to historically low levels. Richard Curtin, Director of the Reuters/University of Michigan Surveys, stated in the report that "The Sentiment Index has only been this low during the recessions of the mid 1970's, the early 1980's and the early 1990's."

The consumer sentiment survey by UMichigan/Reuters fell to a 70.8 score in February, down from 78.4 in January and 30 percent lower than January 2007. The expectations index, which measures future economic sentiment, declined from 68.1 in January to 62.4 in February. Households expressing financial hardship increased to the highest level since 1991 in the February survey. Forty percent of households surveyed said that their finances were worse off and only 20 percent of households had expectations of their finances improving in the year ahead.

Tags: yen, dollar, euro, consumer sentiment, umichigan/reuters, chicago business barometer, consumer spending,

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