US CONSUMER CONFIDENCE AT YEAR LOW
US Consumer Confidence data came out yesterday and it dropped to the lowest level in over a year. The figure dropped to 58.6 from 66.7, a figure much lower than what economists had expected.
This drop in consumer confidence coincides with an increase in Social Security tax, giving Americans less money to take home. Not surprisingly, with lower pay checks consumers are less confident about spending and this is likely to hurt economic growth.
The number of Americans who feel that jobs are plentiful has declined to 8.6% from 10.8%. This negativity regarding the labor market has led to consumers wanting to purchase less. The number of Americans planning to buy a car has also fallen to the lowest point since April 2012.
The country's GDP will be released later today and that will provide a more accurate picture of the economic outlook.
The euro remained steady at a 14-month high against the dollar. Investors are waiting for the results from the Federal Reserve meeting later today, where it is expected that they will reaffirm their easing program until the unemployment rate drops below 6.5%. Meanwhile, the greenback strengthened versus the yen Wednesday morning, approaching a two and a half year high.