US CB Consumer Confidence Index fell to 84.5 in January
- US CB Consumer Confidence Index recedes in January.
- The US Dollar Index remains on the back foot below 97.00.
US consumer sentiment lost momentum in January, as the Conference Board’s Consumer Confidence Index fell to 84.5 from a revised 94.2 (from 89.1), hitting the lowest level since 2014.
From the data release: “The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—dropped by 9.9 points to 113.7 in January. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—fell by 9.5 points to 65.1, well below the threshold of 80 that usually signals a recession ahead.”
According to Dana M Peterson, Chief Economist at The Conference Board: “Confidence collapsed in January, as consumer concerns about both the present situation and expectations for the future deepened. All five components of the Index deteriorated, driving the overall Index to its lowest level since May 2014 (82.2)—surpassing its COVID-19 pandemic depths.”
Market reaction
The US Dollar (USD) extends its ongoging leg lower, motivating the US Dollar Index (DXY) to break below the 97.00 support to reach the lowest level so far this year.
Author
FXStreet Team
FXStreet
