U.S. Consumer Spending Drops; What's Next for the U.S. Economy?

U.S. Consumer Spending Drops; What's Next for the U.S. Economy? - U.S. dollar struggles in currency trading.

The latest news about spending, as well as concerns about hiring, are sending the U.S. dollar lower today. Concerns about the economy are coming to the forefront, now that a deal for raising the debt ceiling has been reached.

Unfortunately, the debt ceiling deal does little to truly address some of the big problems facing the U.S. economy. After all, another battle could be set up as the debt ceiling is approached later. Additionally, the massive spending cuts proposed are likely to slow the economy even more.

As a result, the U.S. dollar is struggling in currency trading on the FX market. The dollar index is lower, and the greenback is at a disadvantage against currencies like the euro and the loonie, both of which might be seen as viable alternatives to the greenback.