Consumer Credit - Currency Trading Report

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by: fxsolutions
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Date: Thu, 20 Oct 2011 Time: 2:52 PM
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Joseph Trevisani, Chief Market Analyst at FX Solutions (http://www.fxsolutions.com/), provides Forex traders with an overview of currency market activity and news surrounding American consumer credit.

"American consumers pulled back sharply on their credit lines in August, reducing their financial exposure by the most in over a year.

The unexpected $9.50 billion reduction was almost a negative doubling of the $8.0 billion expansion predicted by 33 economists in the Bloomberg survey and came after an $11.9 billion increase in August.

Revolving and non-revolving debt declined. It was the first twin reversal in over 15 months. Revolving credit shrank $2.27 billion; non-revolving credit, loans with a fixed term, dropped by $7.23 billion the first decline since last May and the biggest decrease since August 2008.

Consumers normally put larger purchases like automobiles and college loans on non-revolving credit lines and more spontaneous purchases on the revolving lines of their credit cards. The drop in both types of credit indicates that American are curtailing both planned and spontaneous purchases and diminishing existing debt."

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Forex trading involves substantial risk of loss and is not suitable for all investors.

About FX Solutions

FX Solutions is a leading foreign exchange broker with a focus on advanced currency trading technologies, transparency of transaction and unparalleled customer service. FX Solutions serves retail clients, white label partners, institutional trading partners and introducing brokers in over 140 countries.

FX Solutions' products are regulated in the United States, United Kingdom and Australia. FX Solutions in the United States is regulated as a member of National Futures Association, and registered with the Commodity Futures Trading Commission as a Futures Commission Merchant. In the United Kingdom, FX Solutions is a registered trading name of City Index Limited which is authorized and regulated by the Financial Services Authority. FX Solutions in Australia is a registered trading name of City Index Australia Pty Ltd. which is authorized and regulated by the Australian Securities and Investments Commission.

For more information, please visit www.fxsolutions.com www.fxsol.co.uk and www.fxsolutions.com.au