News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Forex News: U. of Michigan Confidence Back at 2007 Highs, USDJPY Rallies

Forex News: U. of Michigan Confidence Back at 2007 Highs, USDJPY Rallies

Christopher Vecchio, CFA, Senior Strategist

THE TAKEAWAY: USD U. of Michigan Confidence (NOV P) > 84.9 versus 82.9 expected, from 82.6 > USDJPY BULLISH

Another day, another strong print for the US economy. This time, one of the best leading indicators for future consumption, the U. of Michigan Confidence report, surged to its highest level in five years, beating all 71 economists polled for a Bloomberg News survey. The preliminary November reading came in at 84.9, well-above the forecasted 82.9 and the final October figure of 82.6.

Additionally, the Economic Conditions subcomponent is up to 91.3, a yearly high, and the Economic Outlook is in similar rarefied atmosphere at 80.8. Needless to say, the US consumer is feeling good. Why does this matter? Consumer confidence often leads spending habits; with consumption representing nearly 75% of the headline GDP, this private sector reading of sentiment can be very market moving.

USDJPY 1-minute Chart: November 9, 2012

Forex_News_U._of_Michigan_Confidence_Back_at_2007_Highs_USDJPY_Rallies_body_Picture_1.png, Forex News: U. of Michigan Confidence Back at 2007 Highs, USDJPY Rallies

Charts Created using Marketscope – Prepared by Christopher Vecchio

Following the release, the USDJPY initially dipped from 79.32 to 79.28, but the improved US data eventually kicked in and boosted the pair higher. At the time of writing, the USDJPY had appreciated to 79.48, while the AUDJPY had appreciated to 82.55 from 82.37.

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher’s e-mail distribution list, please fill out this form

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES