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
Wall Street
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
More View more
Real Time News
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/Q3Yfe6TMLw
  • The non-farm payroll (NFP) figure is a key economic indicator for the United States economy. It is also referred to as the monthly market mover. Find out why it has been given this nickname here: https://t.co/yOUVEEqhc5 https://t.co/6inC94w5K4
  • All eyes on the Fed on Wednesday as investors weigh on chances of a taper announcement. Get your weekly equities forecast from @HathornSabin here: https://t.co/Cv06XcvldF https://t.co/I12g2YPkdE
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/KsPiWBysiR
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/iUvhLfQgcK
  • The US Dollar caught a bid in the late part of last week to set a fresh September high. FOMC is around the corner, are bulls going to be able to push for another fresh high? Get your weekly US Dollar forecast from @JStanleyFX here: https://t.co/ZkDHyV1VhM https://t.co/w5sPChKdNx
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/bde30KM8OE
  • The Australian Dollar remains vulnerable to most of its major counterparts, with AUD/USD and AUD/JPY resuming losses. Did AUD/NZD bottom? AUD/CAD may consolidate. Get your weekly Australian Dollar forecast from @ddubrovskyFX here: https://t.co/sjh91mjtXs https://t.co/dGT067zKnH
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/VLZQhrQTAf
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
US Economy Looks in Great Shape as Consumer Confidence Surges

US Economy Looks in Great Shape as Consumer Confidence Surges

Omar Habib,

Talking Points:

- Conference Board Consumer Confidence Index reaches highest in 15 years.

- Previous month’s reading was revised higher.

- US Dollar largely unchanged on the data.

The Conference Board’s Consumer Confidence Index rose to 113.7, beating expectations of 108.8. This is the highest reading since August 2001 and follows an already high reading of 109.4. Earlier this month, the University of Michigan Consumer Confidence for November came in at 98.0, the highest reading in almost two years.

Continued signs of a strong consumer, especially during the heavy-spending holiday season, are very positive for US Q4 growth. The odd thing seen here is that, despite strong readings of Consumer Confidence for November, Retail Sales, Durable Goods both came in worse than expected as Durable Goods Orders contracted and Retail Sales were almost flat. Look later this month for consumer spending data to see if it rises with the increase in Confidence.

Increasing strength in Consumer Confidence to decade highs signals continued consumer strength in the US, which is vital to the health of the US economy. Consumption accounts for approximately 70% of GDP. Stronger consumers propelling inflation, combined with new expectations of higher fiscal spending, should continue to put further pressure on the Federal Reserve to raise interest rates sooner and potentially faster. As of this morning, markets were only pricing in two rate hikes for this year, versus the Fed’s expectations of three. The first Fed meeting with at least a 60% chance of higher rates is June 2017.

See the DailyFX economic calendar for Monday, December 27, 2016

Chart 1: USD/JPY Index 1-minute Chart (December 27, 2016 Intraday)

US Economy Looks in Great Shape as Consumer Confidence Surges

Following the news, the USD/JPY traded within a band of almost 2 pips around 117.54, barely reacting to the data.

--- Written by Omar Habib, DailyFX

For questions or comments, e-mail feedback@dailyfx.com

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

DISCLOSURES