USDJPY Rallies after Consumer Confidence Soars to Seven-Month Highs
Despite weak headline growth and dimming labor market prospects, the US consumer is nearly as confident as they were near the start of the year, according to the Conference Board’s Consumer Confidence index released today. The sentiment gauge rose to 70.3 from 61.3, cruising past the 63.1 expected.
There are a few reasons why consumers may be becoming more confident despite numerous headwinds: housing prices have started to rebound; stock markets are near all-time highs; and the Federal Reserve has unleashed a massive (truly unprecedented in nature) balance sheet expansion. In part, these are the same factors influencing American voters’ decisions headed into the US Presidential Election: it is of no surprise that the Consumer Confidence index has risen alongside with President Barack Obama’s polling figures in recent weeks.
USDJPY 1-minute Chart: September 25, 2012
Charts Created using Marketscope – Prepared by Christopher Vecchio
Ahead of and following the release, the USDJPY was on the move higher, trading up from 77.74 to as high as 77.92. However, at the time this report was written, the USDJPY had fallen back to 77.84. Elsewhere, the US Dollar was weaker, with the EURUSD trading up to 1.2967 from 1.2944, while the AUDUSD rallied from 1.0447 to as high as 1.0463.
--- Written by Christopher Vecchio, Currency Analyst
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