USD moving higher despite dip in consumer confidence

Summary:

• CB consumer confidence pulls back a little more than expected

• Reading still remains elevated by historical standards

• USD higher on the day; Gold drops below $1220

The main economic release of the North American session, has shown a slightly bigger fall than expected in consumer sentiment but all things considered, it isn’t really a soft data point and the US dollar remains higher on the day. The Conference board reading for November came in at 135.7 vs 135.9 expected and down from 137.9 for the previous month. This metric has followed the other widely viewed gauge (University of Michigan) of the mood amongst consumers in falling lower in the latest reading, but compared to the past decade both these remain close to record highs. The present situation subcomponent was little changed at 172.7 vs 172.8 prior while expectations pulled back to 111.0 from 114.6 previously.

Despite the recent pullback in consumer confidence both the Uni Mich and CB readings remain not far from their highest levels of the decade. Source: XTB Macrobond

The US dollar was already higher on the day against most of its peers before the release and the slight miss has done little to curb its strength. Only the Mexican Peso is making any real gains against the greenback, with antipodean currencies marginally higher. The GBP is the worst hit of developed currencies on the day, with the pound falling lower on political developments in the UK.

EURUSD has broken below the 61.8% fib today at 1.1312 and the market is now sub 1.13 and closing in on the 78.6% fib at 1.1268. Source: xStation   

Gold has dropped fairly sharply this afternoon on this USD strength with the market accelerating lower after breaching the 1220 mark. Source: xStation