US consumer confidence index expected to rise again

NEW YORK (Forex News Now) – The Conference Board Inc. is due on Tuesday to publish the level of its consumer confidence index, in one of the week’s major realtime forex news events affecting the dollar.

The report is expected to show that the index rose to 56.3 points in December, according to at least two major online FX trading sites, up from the five-month high of 54.1 that was recorded at the end of November.

It is based on a survey of 5,000 households which asks respondents to rate the level of present and future economic conditions.

The board is scheduled to release the report at 3:00 P.M., GMT; as such, the data is likely to have a big impact on dollar currency market trading on Tuesday afternoon.

According to EUR/USD analysis, a lower-than-expected increase in confidence, or even a decrease, could lift the currency pair toward short-term resistance around the Dec. 21 high of 1.3181.

But should the data show a greater-than-expected increase, EUR/USD could be pushed toward short-term support around the Nov. 30 low of 1.2968.