Dollar falls against all major after disappointing data.

US Consumer Confidence printed 75.0 against the forecast of a fall to 82.0, Which Triggered a rally In All the Majors.

With EUR/USD finally hits the elusive 1.5000 level, and AUD/USD back above 0.9300.
PPI m/m printed 1.0% above expectations of 0.4%, And Core PPI printed 0.4% above expectations of 0.2%.

A drop in Consumer Confidence, which indicates a Slow Growth in the Economy, together with Above expectations PPI which means a Higher Inflation sign, only complicates matter for FOMC in terms of their Interest Rate Decision Making.

Forget Recession, US Economy is entering a Stagflation Economy. It will be interesting to see what move FOMC will take. Will they ease The interest rate again to boost growth, like what most People are assuming right now. Or hold rates as it is to deter any possible rise in inflation? (more…)