Talking Points:
- Sentiment survey beat the estimated 121.5 at 125.9; previous figure was also revised higher
- Consumers remain optimistic about the present day conditions and the labor market
- US Dollar Index continues to trade within a narrow range
- See the DailyFX Economic Calendar for upcoming economic data and for a schedule of live coverage see the DailyFX Webinar Calendar.
The Conference Board Consumer ConfidenceSurvey came in at the highest level since December 2000 at 125.9. According to the Conference Board, “Consumers were considerably more upbeat about the short-term outlook, with the prospect of improving business conditions as the primary driver. Confidence remains high among consumers, and their expectations suggest the economy will continue expanding at a solid pace for the remainder of the year.”
Alongside the rise in confidence, consumers also were more optimistic about present-day conditions in October. The percentage of consumers saying that business conditions are “good” increased by 1.1% to 34.5%. Conversely, those saying that business conditions are “bad” rose as well by 0.3% to 13.5%.
As for the overall labor market, consumers’ short-term outlook in October increased as well. The percentage of consumers expecting business conditions to improve over the next six months increased from 20.9% to 22.2%, while those expecting business conditions to worsen decreased from 9.6% to 6.9%.
Below is a list of economic releases that has had a limited impact on the US Dollar higher:
- USD Consumer Confidence Index (OCT): 125.9 versus 121 expected, from 120.6 (revised higher from 119.8)
- USD Conf. Board Present Situation (OCT): 151.1 from +146.9 previous (revised higher from 102.2)
- USD Conf. Board Expectations (OCT): 109 from 103.0 previous (revised higher from 119.8)
See the DailyFX economic calendar for Tuesday, October 31, 2017
Chart 1: DXY 15-minute Chart (October 31, 2017 Intraday)
The chart above shows that the US Dollar Index barely reacted to the consumer confidence print. DXY at 94.59 continued to trade within a narrow range at the time that this was written.
--- Written by Dylan Jusino, DailyFX Research
