U.S. consumer confidence eases in April, Fed likely to stand pat next week

U.S. consumer confidence eased in April; however, the still high confidence reading affirms the recent softness in consumer spending was a weak patch. Consumers continue to be positive regarding their finances and job prospects.

Following a soft run in data, the consumer has regained some footing. Retail sales recovered 1.6 percent in March, while consumer confidence rose to its highest level since October in the month. Sentiment has since eased just slightly to 97.2 in April – still in line with strong consumer spending. Earlier today, the first quarter growth data was released that showed the economy expanded 3.2 percent. However, the fall in April confidence was reflective of weaker prospects of economic growth later this year.

The S&P index reached an all-time high this week, and rose almost 25 percent since bottoming in December. Recent market strength might stimulate confidence in months ahead. Consumers’ inflation expectations continue to be widely anchored, which should keep the Fed to stay on hold during next week’s meeting, noted Wells Fargo in a research report.

At 17:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at -9.95604 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex