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29 Jul 2014
US Consumer confidence highest since October 2007 - ING
FXStreet (Łódź) - James Knightley from ING comments on the strong US Consumer Confidence number which jumped to 90.9, much higer that consensus of 85.4.
Key quotes
“June’s figure was also revised higher so we now have a really strong upward trend in place."
“Importantly, the bulk of the improvement was in the expectations component. The 92.7 reading for this component has historically been consistent with real consumer spending growth of close to 3%YoY versus the current rate of 1.9%, thereby offering hope that the US growth story can gain more momentum in 2H14.”
“In any case, we expect tomorrow’s 2Q GDP number to come in on the strong side of market expectations and look for Friday’s payrolls number to be firm too (with the possibility of a sub-6% unemployment rate figure).”
“Such an outcome would put pressure on the Federal Reserve to shift the balance of their language while bringing forward market expectations for the First Fed rate hike – we are predicting April.”
Key quotes
“June’s figure was also revised higher so we now have a really strong upward trend in place."
“Importantly, the bulk of the improvement was in the expectations component. The 92.7 reading for this component has historically been consistent with real consumer spending growth of close to 3%YoY versus the current rate of 1.9%, thereby offering hope that the US growth story can gain more momentum in 2H14.”
“In any case, we expect tomorrow’s 2Q GDP number to come in on the strong side of market expectations and look for Friday’s payrolls number to be firm too (with the possibility of a sub-6% unemployment rate figure).”
“Such an outcome would put pressure on the Federal Reserve to shift the balance of their language while bringing forward market expectations for the First Fed rate hike – we are predicting April.”