Economic Data Supports the US Dollar

Economic data is supporting the US dollar today. With the best economic confidence readings in a long time, some think that the Fed will be forced to reduce its easing efforts sooner rather than later. This is adding fuel to the fire for the US dollar today.

The Conference Board is reporting that the consumer confidence index has risen to a five-year high of 76.2. This is a vast improvement over the 69.0 seen in April. The index was not expected to rise so high, and it is clear that Americans are expressing confidence in economic recovery.
Also helping the cause is the fact that home prices are on the rise as well. With this good economic data, there is speculation that the Federal Reserve will be forced to end its quantitative easing measures sooner rather than later, and that is lending support to the US dollar.
Greenback is higher against its major counterparts, making strides on the strength of its expected economic recovery. This is especially apparent as many of the dollar’s rivals are struggling economically.
At 15:24 GMT EUR/USD is down to 1.2853 from the open at 1.2932. GBP/USD is also lower, dropping to 1.5039 from the open at 1.5101. USD/JPY is higher, rising to 102.2900 from the open at 100.9615. USD/CAD is up to 1.0378 from the open at 1.0339.

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