The main release from the US yesterday was the consumer confidence index reading for January. The figure – calculated by America’s Conference Board – dropped to just 120.2 this month from 126.6 in December. While the markets had expected a decline, it was much more modest at 124.9. The reading essentially shows that the recent government shutdown – which was the longest one in history – has negatively affected the US economy.
The Federal Reserve will meet tonight to announce its latest interest rate decision. It is widely expected that rates will be held at 2.5%, but it will be interesting to see what policymakers say in the accompanying press conference. Any indications of future policy could cause some dollar movements.
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