US Dollar May Not Find Strength in Upbeat Consumer Confidence Data

The US Dollar may not find strength in upbeat Consumer Confidence data despite a rosy outcome’s supportive implications for Fed rate hike expectations.

Talking Points:

  • Japanese Yen Higher on Haven Flows as Stocks Decline in Asian Trade
  • US Dollar May Not Find Strength in Upbeat Consumer Confidence Data
  • See Economic News Directly on Your Charts with the DailyFX News App

The Japanese Yen outperformed in overnight trade, rising as much as 0.3 percent on average against its leading counterparts. The move mirrored losses on Asian stock exchanges, pointing to haven demand as the catalyst behind the safety-linked currency’s advance. The MSCI Asia Pacific regional benchmark equity index fell 0.1 percent.

Looking ahead, a quiet economic calendar in European trading hours is likely to see investors focusing on December’s US Consumer Confidence reading. Expectations point to a print at 94.0, putting the index within a hair of the seven-year high at 94.1 recorded in October.

US economic news-flow has markedly improved over recent weeks, with realized outcomes outperforming expectations by the largest margin close to four months (according to data from Citigroup). That hints analysts are underestimating the vigor of the world’s largest economy and opens the door for an upside surprise.

At surface level, an upbeat result might be expected to fuel Federal Reserve interest rate hike speculation, boosting the US Dollar. Seasonal considerations may interfere with this dynamic however. On one hand, the holiday liquidity drain has meant that directional conviction is hard to come by. On the other, worries about the negative impact of Fed tightening on risk appetite may trigger profit-taking on sensitive positions. If this triggers a sizable USDJPY decline, the move may spill over into broader weakness for the benchmark unit.

Critical Levels
CCY Supp 3 Supp 2 Supp 1 Pivot Point Res 1 Res 2 Res 3
EURUSD 1.2016 1.2094 1.2123 1.2172 1.2201 1.2250 1.2328
GBPUSD 1.5381 1.5459 1.5488 1.5537 1.5566 1.5615 1.5693

Related Articles

15 COMMENTS

  1. Awesome web site and with very useful stuff. I’m pleased I discovered this page. The site has plenty of excellent information on the this subject of. Many thanks for this blog post. I should be coming by time and again and reading through your previous entries.

  2. You could definitely see your enthusiasm within the work you write. The sector hopes for more passionate writers like you who aren’t afraid to mention how they believe. Always follow your heart.

  3. Most of what you state happens to be astonishingly precise and it makes me wonder the reason why I had not looked at this with this light previously. This particular piece really did turn the light on for me personally as far as this particular issue goes. Nevertheless at this time there is actually one factor I am not necessarily too comfy with so whilst I attempt to reconcile that with the core idea of your position, allow me see just what the rest of your subscribers have to point out.Well done.

  4. Heya this is somewhat of off topic but I was wondering if blogs use WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding know-how so I wanted to get guidance from someone with experience. Any help would be enormously appreciated!

  5. This is the perfect blog for anybody who would like to understand this topic. You know so much its almost tough to argue with you (not that I really would want toÖHaHa). You definitely put a brand new spin on a subject which has been written about for a long time. Great stuff, just wonderful!

  6. Pottery by fashionable makers and designers is expensive, especially in antiquated shops and specialised sales, but it is yet doable to construct an engaging collection of forward looking ceramics without breaking the bank.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

22,878FansLike
3,122FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles