Dollar Lifted as August U. of Michigan Confidence Index Revised Higher
- US consumers better off than previously estimated.
-Confidence below July level, in line with rising interest rates.
- EURUSD BEARISH
The US Dollar has seen a kick higher this morning amid signs that US consumers are weathering the recent patch of softer economic activity. The final U. of Michigan Consumer Confidence survey for the month of August ticked slightly higher to 82.1, but remained the previous month (and yearly high) of 85.1.
Here are the figures driving US Dollar price action:
- U. of Michigan Confidence (AUG F): 82.1 versus 80.5 expected (initial 80.0), prior 85.1.
From earlier today, these data proved to be a bit of a drag on the US Dollar as US Treasury yields slipped:
- Personal Income (JUL): +0.1% versus +0.2% expected, from +0.3% (m/m)
- Personal Spending (JUL): +0.1% versus +0.3% expected, from +0.6% (revised lower from +0.5%) (m/m)
- PCE Core (JUL): +1.2% versus +1.3% expected, from +1.2% (y/y)
EURUSD 1-minute Chart: August 30, 2013
Charts Created using Marketscope – prepared by Christopher Vecchio
Nevertheless, despite mixed/softer secondary US Data earlier in the day, the US Dollar now finds itself sitting at or near session highs against most of its major counterparts as forex traders rebalanced their books at the end of the month.
The EURUSD slipped from near $1.3220 ahead of the release to as low as 1.3202. At the time this report was written, the EURUSD was trading at 1.3205.
--- Written by Christopher Vecchio, Currency Analyst
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