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.

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
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Bullish
Gold
Bearish
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.20%, while traders in US 500 are at opposite extremes with 62.11%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/9tCHS7o18f
  • Heads Up:🇺🇸 Fed Williams Speech due at 17:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-29
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Silver: 1.93% Gold: 0.62% Oil - US Crude: -4.59% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/674URQqbej
  • Forex Update: As of 16:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.49% 🇪🇺EUR: 0.41% 🇳🇿NZD: 0.37% 🇬🇧GBP: 0.05% 🇯🇵JPY: -0.17% 🇨🇦CAD: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/NLmATP58eY
  • Trader confidence is relatively buoyant in the currency markets, benefiting FX pairs such as EUR/USD, GBP/USD and AUD/USD at the expense of the safe-haven US Dollar. Get your market sentiment update from @MartinSEssex here: https://t.co/ir7hXNfxec https://t.co/2IwbcrkrM5
  • Join @JStanleyFX 's #webinar at 1:00 PM ET/5:00 PM GMT for his weekly update on trading price action. Register here: https://t.co/ZCcMdyaTsB https://t.co/xn5x2AG5vI
  • Indices Update: As of 16:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.16% Germany 30: -0.17% France 40: -0.17% US 500: -0.63% Wall Street: -0.81% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/z1qnxoAWz7
  • Reports of German Chancellor Merkel saying EU recovery funds will be increasingly delayed came just as $EURUSD was struggling with former support (H&S neckline) as new resistance. When fundamentals and technicals converge... https://t.co/BDvM9DXBW6
  • Heads Up:🇩🇪 Bundesbank Mauderer Speech due at 16:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-09-29
  • Germany says blockades in recovery fund discussions are increasing $EUR
US Dollar Rallies as Consumer Confidence Weathers the Weather

US Dollar Rallies as Consumer Confidence Weathers the Weather

2014-02-25 15:40:00
Christopher Vecchio, CFA, Senior Strategist
Share:

Talking Points:

- US Consumer Confidence (FEB): 78.1 versus 80.0 expected, from 79.4 (revised low from 80.7).

- Subindexes shows Americans remain confidence in present situation, less certain about future.

- US Dollar rallies versus European currencies on news, steady versus Asian-Australasian.

Winter’s inclemency may or may not be impacting the US economy but US consumers are thus far weathering the weather. The Consumer Confidence gauge dropped to 78.1 in February from 79.4 in January, but the Present Situation subcomponent climbed to its highest level over the past 12-months at 81.7. The Expectations subindex dropped to 75.7 from 80.8, but remains above the lows set near 71 around the October fiscal hot stove.

US_Dollar_Rallies_as_Consumer_Confidence_Weathers_the_Weather_body_Chart_1.png, US Dollar Rallies as Consumer Confidence Weathers the Weather

This data suggests that American consumers retain their positivity about the economy, but the recent patch of weakness seen the past few months is starting to erode hope. Considering that Americans feel that their current situation is improving steadily, any drop in consumption data seen from December to February could bounce back once warmer, more amicable spring weather arrives. If the relationship in the chart above holds, this would suggest that US yields should move back higher, which could support the US Dollar.

EURUSD 1-minute Chart: February 25, 2014 Intraday

US_Dollar_Rallies_as_Consumer_Confidence_Weathers_the_Weather_body_x0000_i1028.png, US Dollar Rallies as Consumer Confidence Weathers the Weather

Charts Created using Marketscopeprepared by Christopher Vecchio

The EURUSD initially rallied from $1.3756 to as high as 1.3762 on the news, but soon plunged to fresh daily lows at 1.3714 as the underlying components of the report were absorbed. The EURUSD was trading at 1.3725 at the time this report was written.

--- 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