Forex Headlines Today On Thursday, the dollar rallied versus its major rivals as it cast off several recent anchors when oil prices declined and markets turned their focus to U.S inflation, boosting investor sentiment in the U.S. currency. U.S. economy expanded in the first quarter of 2008 at a 0.9% annual pace, in line with economists' expectation. U.S. durable goods orders released on Wednesday fell by a smaller-than-expected 0.5% last month, bolstering the a view that the Fed may increase its interest rates later this year from the current 2.0%. Fed Fisher's hawkish comments about hiking rates "sooner rather than later" are still reverberating through currency markets. The USD's resilience may not last much longer now as concern over the US housing market and the continued decline in consumer confidence start to offset expectations of an early Fed tightening of interest rates. Some traders are saying that environment has turned friendly toward the dollar and not only does it seem likely the Fed's round of easing is over, but hikes could be imminent. University of Michigan Consumer Confidence Report Just In U.S. consumer confidence levels declined for the fourth straight month in May, hitting a 28-year low. The University of Michigan consumer sentiment survey for all of May saw the overall index move to 59.8 from 62.6 in April. May's reading was the lowest since June 1980. April Personal Consumption Report Just In Consumer spending increased mildly in April, but the gain was obliterated by the effect of rising prices, a government report Friday showed. Personal consumption increased by 0.2% compared to the month before, the Commerce Department said. March spending had gone up an unrevised 0.4%. The report showed personal income increased at a seasonally adjusted rate of 0.2% compared to the month before. Income rose 0.4% during March, revised from a previously estimated 0.3% gain. Bullish Speak and Mixed Data Reports With mixed data headline reports like this, and the bullish comments lately from the fed, economists, and analysts, whats a forex trader to think and do? Go long the US Dollar now? Not so fast! Click here to view a free forex forecast video showing where the US Dollar may be surprisingly going.