U.S. University of Michigan consumer confidence bolsters in February, consumer likely to stay positive

The U.S. University of Michigan consumer confidence bolsters in February. The preliminary estimate of the index of consumer sentiment rose in February to 99.9, surpassing consensus expectations of 95.5. The recent volatility in the stock markets was expected to have adversely impacted consumers’ expectations of incomes, noted Barclays in a research report.

But, that does not appear to be the case. The report indicates widespread rebound throughout the present situation and consumer expectation sub-indices, with consumers coming across as more positive regarding current household finances as compared with a year ago. The press release stated that negative references to stock prices were spontaneously cited by just 6 percent of all consumers. Instead, favorable perceptions of the tax reforms dominated. The one-year and long-term inflation expectations indices continued to be the same from January.

“In all, consumers continue to remain optimistic about income growth and household finances, which bodes well for consumption spending in the coming months”, added Barclays.

At 20:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was bearish at -95.9054. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest