By CountingPips.com
Consumer confidence declined by more than expected in October, one month after reaching a 2009 high point according to the preliminary figures for the October University of Michigan/Reuters consumer confidence survey. The UMichigan/Reuters consumer sentiment index score fell to 69.4 in October, down from a 73.5 score in September which had marked the highest score for the year. The consumer report was worse than economic 
forecasts that were expecting the report to edge down a bit to a 73.3 score for October.
The current conditions index, which measures present economic sentiment, declined by 1.3 points from September to a 72.1 score in October while the expectations index declined by 5.9 points to a 67.6 score in October. Inflation expectations showed that consumers expect 2.8 percent inflation in one year from now while on a five-year horizon inflation is expected to register 2.9 percent.
The report commented on the consumer sentiment saying that, “While consumers still anticipated gains in the general economy and now think that the unemployment rate is close to its cyclical peak, there has been no improvement in consumers’ dismal assessments of their personal financial situation”.
Foreign Demand for US assets increases in August
Also released today by the Treasury Department was the Treasury International Capital Data for August and showed that foreign demand for long-term US securities grew from July. Foreign demand for U.S. long-term securities, which includes stocks, bonds and agency debt, advanced by a net total of $28.6 billion in August.
This important data to watch capital flows in and out of the US had totaled $15.3 billion long-term purchases of securities in July. France purchased the most Treasuries in August with a purchase of $10.4 billion and hold a total of $35.0 billion of U.S. Treasuries. China, who holds the most U.S. Treasuries with $797.1 billion, reduced their holdings by $3.4 billion in August from July. Japan is the second largest holder of Treasuries with holdings of $731.0 billion through August, up from a total of $724.5 in July.
US Dollar gains in Forex Trading today
The U.S. dollar has been stronger in forex trading today against the other major currencies. The dollar gained today versus the euro, Japanese yen, Swiss franc, Australian dollar, Canadian dollar and New Zealand dollar while falling against the British pound at 3:05 pm EDT.
On a weekly basis, the dollar is down against all of these currencies with the exception of the Japanese yen from the beginning of the week.
Today, the U.S. stock markets have been negative at time of writing with the Dow Jones down by approximately 60 points, the Nasdaq falling by roughly 10 points and the S&P 500 down by approximately 5 points. Oil has edged up today by $0.95 to trading around the $78.55 mark while gold has edged up by approximately $0.90 today to trade at the $1,050.70 level.
GBP/USD Daily Chart – The British Pound Sterling has gained versus the US Dollar this week in trading. Despite this week’s approximate gain of 500 pips against the Dollar, the Pound is still in its downtrend from the recent high of 1.7043 on August 5th and trading right at its 100-day moving average in red.
