US dollar is mostly higher today, getting a boost from economic expectations for the new year. Greenback is gaining against its European counterparts, even though it’s lost ground against the yen since trading at a five-year high earlier.
Greenback is seeing a great deal of support right now. Earlier this week, the US Conference Board showed data indicating that consumers are feeling confident about the economy. The consumer confidence index for December jumped to 78.1 from the 72.0 seen in November. The news came on Tuesday, just before many markets were closed for the New Year holiday on Wednesday.
Traders have time to consider the news, and the US dollar is surging as volume picks up a bit. It’s also helping that the unemployment rate in the United States has reached the 7 per cent level and the S&P Case-Shiller index indicates that home prices are rising.
With all of this news, and the Fed taper starting this month, it is little surprise that the greenback is getting a bit of a boost today. Other economies aren’t doing so well, and that gives the dollar an advantage.
At 15:37 GMT EUR/USD is down to 1.3631 from the open at 1.3748. GBP/USD is down to 1.6431 from the open at 1.6565. USD/JPY is down to 104.8760 from the open at 105.3145.
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