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USD Muted After Consumer Confidence Figures, Eyes on NFP

USD Muted After Consumer Confidence Figures, Eyes on NFP

Justin McQueen,
  • US Consumer Confidence Hovers at Historic Highs
  • USD sees Muted Reaction from Data Release, Eyes on US NFP.

For a more in-depth analysis on the USD, check out the Q2 Forecast for USD

US Consumer Confidence Remains at Historically High Levels

The US Consumer Confidence Index printed in line with expectations at 128 for May, up from a revised 125.6. The Conference Board highlighted that consumers assessment of current conditions increased to a 17-yr peak at 167.5, indicating that the level of economic growth in Q2 is likely to have improved from Q1. Overall, confidence among consumers remain at historically high levels, despite the backdrop of trade wars between the US and China.

Labour Market Outlook

Consumers view on the labour market had been somewhat mixed with the proportion of those expected more jobs in the upcoming months rising to 19.7% from 18.6%, while those expecting fewer jobs rising from to 13.9% from 13.2%. A greater indication of the current labour market will be seen on Friday with the release of the latest US NFP report, expectations are for 188k.

Reminder: DailyFX Analyst’s David Song and Paul Robinson will provide live coverage of the NFP report from 12:15GMT, to register, click here

USD PRICE CHART: DAILY TIME FRAME (August 2017-May 2018)

Chart by IG

Given the fact that the US Consumer Confidence data does not typically instigate significant price action, the greenback saw a very muted reaction upon release. The USD has largely been supported by the weakness observed in the Euro on the back of Italian political woes, as such, the greenback is looking at making a test towards October highs.

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX

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

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