U.S. Dollar Forex Trading Forecast: Consumer Confidence on the Rise?

Has consumer confidence reached a bottom?

The U.S. dollar forex trading forecast is about to get more interesting. Right now, it appears that consumer confidence is on the rise, which should be helpful to the U.S. economy in terms of recovery. GFT’s Boris Schlossberg reports on the latest consumer confidence findings:

Despite the dour labor market data, today’s report indicates that US consumers are slowly beginning to return back to the stores, a development that should prove supportive to the overall US economy given the fact that consumption constitutes more than 70% of the GDP.

Schlossberg reports that consumer confidence has risen to 49.1, which puts it very close to the 50-point level that suggests boom/bust. The idea is that consumer confidence may have bottomed out.

What this actually does to the U.S. dollar in forex trading is another matter. Some feel that the greenback will benefit in currency trading from this positive economic news. Others feel that as soon as the recession starts abating, the dollar will drop as forex traders focus on fundamentals and show wariness for the large amounts of U.S. debt.