Currency Note US Dollar

Poor US consumer confidence undermines the US dollar

By Smart Currency November 27th, 2013

The US dollar had a mixed day with one major data release surpassing expectations and the other falling short. Building permits data was the first of these to be released and this showed that the number of applications for home construction issued in October was the highest monthly figure for five years. This result pushed the US dollar higher, although these gains were cancelled out after a measure of consumer confidence failed to reach its expected level. Today sees two more significant releases for the dollar issued simultaneously, with core durable goods orders and unemployment claims both to be heard later this afternoon. An improving labour market was noted to be a key factor before the Federal Reserve would consider tapering its quantitative easing program, as a result, these figures will be watched closely by investors as they try to second guess whether or not the central bank will taper at Decembers meeting. A few other less influential releases are also scattered throughout the afternoon and as such multiple strong results could further bolster opinions of an earlier than expected reduction in the bond buying process, something which has been holding back the US currency for some time. Call your trader now for the latest on the US dollar, as the longer term remains the focus.