By: DailyForex.com
US consumer confidence fell to a five-month low in December. According to Thomson Reuters/University of Michigan’s final report, the consumer confidence index lagged to 72.9, a level that is decidedly worse than the 74.7 expected index. Though physical stores didn’t seem to lack for shoppers, online sales during this year’s holiday season increased a scant 8.4 percent, compared to last year’s nearly 16 percent growth, according to a study by MasterCard Advisors SpendingPulse. In contrast, a report by Comscore claimed that e-commerce sales did rise 16 percent between November 1 and December 21 of this year. Among the chief concerns of US consumers for the upcoming year are tax hikes, rising unemployment and these fears were clearly reflected in this year’s holiday spending trends.
Demand for the dollar increased as investors displayed concern over the fiscal cliff. The Japanese yen hit 84.96 per dollar on Monday, the weakest level since April 2011, before rebounding to 84.80. Japan is preparing to welcome tomorrow its new prime minister, Shinzo Abe, who plans to encourage growth through unlimited monetary easing. The yen fell 13 percent in 2012, while the US dollar has weakened 2.8 percent. In comparison, the euro weakened only 0.9 percent.