Consumer Confidence Not Enough for the US Dollar

US dollar is losing ground today against its major counterparts, even though there is a degree of risk aversion in the markets, and consumer confidence is on the rise. The news that Russia and China continue to work to bypass the greenback is one item adding to dollar weakness.

The latest US consumer confidence index survey showed a rise to 92.6 this month, from a revised 91.0 in November. This data is still short of the estimates for 93.8, though, and that is one of the reasons that the US dollar isn’t doing as well as expected today.
Even though there is some risk aversion in the markets, and stocks are down, the greenback is struggling today.
Some of the weakness might also come from the fact that China and Russia continue to look for ways to circumvent the dollar in trading. A new currency swap line between the two countries went into effect on December 29, allowing for them to cut out the dollar in their transactions. China has been setting up bilateral swaps with other currencies as well, looking for a way to make the yuan a bigger player.
At 16:07 GMT EUR/USD is up to 1.2169 from the open at 1.2154. GBP/USD is up to 1.5569 from the open at 1.5513. USD/JPY is down to 119.3230 from the open at 120.6920.

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