Dollar Slides Against Euro
Dec 31st, 2008 | By Doug Casey | Category: Financial NewsIn the currency market, the dollar declined modestly against the euro. Late Tuesday, the euro was trading at $1.4086 vs. $1.4013 on Monday.
The day was full of very shaky economic data, led by the Conference Board’s report that its consumer confidence index declined to a record low of 38 in December, from a revised reading of 44.7 last month. That was well below economists’ expectations, which were for a modest rise to 45.8.
“The further erosion of the consumer confidence index reflects the rapid and steep deterioration of economic conditions that occurred in the fourth quarter of 2008,” wrote Lynn Franco, director of the Board’s Consumer Research Center. “The overall economic outlook remains quite dismal for the first half of 2009, and only a modest recovery is expected in the second half.”
The consumer confidence subindex for present conditions plummeted to 29.4 in December from 42.3 in November, the Board said.
Meanwhile, home prices in 20 major U.S. cities dropped 2.2% in October from September, and fell a record 18% from the previous year, according to the Case-Shiller home price index, as reported by Standard & Poor’s. That sends prices back to their March 2004 levels.
Falling prices are likely to accelerate in coming months, said Patrick Newport, economist at IHS Global Insight. “The main force driving house prices down is foreclosures, which are still rising,” Newport wrote. “The Obama administration and the Fed are working on ways to limit the number of ‘preventable foreclosures.’ Unfortunately, trial and error will be part of this process.”
Source: Dollar Slides Against Euro
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