The Reuters/University of Michigan consumer confidence survey fell to a fresh 28-year low of 56.7 in June, down from 59.8 in May. The drop was significantly bigger than expected, and a breakdown of the report shows that sentiment on current and future economic conditions have worsened. Meanwhile, inflation expectations remain high, as consumers anticipate prices to rise 5.1 percent one year from June - down from 5.2 percent in May - while inflation is expected to hit 3.4 percent five years from now. Overall, it is clear that record high energy prices, rising food costs, mounting job losses and a collapsing housing sector are all making consumers feel more pessimistic about economic conditions. Furthermore, while we did see US retail sales surge higher in May, that trend may not last for long as households may be forced to divert their income toward consumer staples, rather than discretionary items. – Terri Belkas, Currency Analyst for DailyFX.com