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U. of Michigan Consumer Confidence Rises to a 5-Month High

U. of Michigan Consumer Confidence Rises to a 5-Month High

Benjamin Spier, Technical Strategist

Talking Points:

  • University of Michigan Confidence rises to a 5-month high
  • USD/JPY shows a small and temporary rise

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Consumer confidence reached a 5-month high in December, according to the University of Michigan survey. The sentiment index was reported at 82.5, beating expectations for 76.0 and up from 75.1 reported in November.

US Dollar traders remain focused on data for the effect on the FOMC’s decision whether or not to taper in the upcoming Fed meeting. The minutes from the last meeting said that the Fed is likely to taper QE in the coming months on better data. However, the dollar failed to hold a rally following this morning’s better than expected payrolls release, possibly because traders didn’t believe the numbers were strong enough to cause a December taper.

Therefore, the consumer confidence survey led to a 10-pip and short lived rise in the dollar against the Yen. A 6-month USD/JPY high set recently at 103.37 may continue to provide resistance.

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USD/JPY 1-Minute: December 6, 2013

U._of_Michigan_Consumer_Confidence_Rises_to_a_5-Month_High__body_Picture_1.png, U. of Michigan Consumer Confidence Rises to a 5-Month High

Chart created by Benjamin Spier using Marketscope 2.0

-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to instructor@dailyfx.com .

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

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