US Consumer Confidence Declines in July While USD Strengthens
US Consumer Confidence is an important data point due to consumption comprising roughly 70% of US GDP. The July figure came in weaker than Bloomberg News survey analysts expected: 80.3 actual; 81.3 expected. Meanwhile Consumer Confidence in June was revised up from 81.4 to 82.1. It is then interesting to note that the USD rallied after the release.
Prior to this release, Consumer Confidence beat Bloomberg News survey expectations the last three times. And despite the miss today, the Consumer Confidence index remains at levels unseen since 2008.
The US Consumer Confidence report was certainly the most important US data today but there are even more significant event risks tomorrow. US GDP and the Fed Rate Decision will be on tap tomorrow.
USDJPY 1-minute Chart: July 30, 2013
Charts Created using Marketscope – prepared by Kevin Jin
The USDJPY chart above shows the initial decline in the USDJPY following a poor data print. However, within several minutes, the -10 pips decline based and the USDJPY began to rally. In fact, the pair is up roughly +20 pips after the low pictured on the chart above. This is roughly net +10 pips from before the release.
--- Written by Kevin Jin, DailyFX Research
New to trading? Watch this.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.