US Dollar Recovers Briefly on Positive US Consumer Confidence

The US dollar today rallied briefly against its peers after the release of positive US consumer confidence data by the Conference Board. The US dollar rallied briefly against the euro, which saw the single currency decline against the greenback from 52-week highs recorded earlier today.
The positive consumer confidence data led to the US Dollar Index recovering from a daily low of 93.64 to trade at 93.94 at the time of writing.
The release of the consumer confidence data for the month of July, which came in at 121.1 as compared to the market consensus of 116.5, indicated that US consumers were unmoved by the recent political upheavals in Washington DC. US consumers expressed confidence in their expectations for the future as well as their current economic situation. The political issues facing the Donald Trump‘s administration did not have an impact on consumers as opposed to large businesses, which are usually extremely susceptible to government policies.
The US dollar rallied higher against the euro, which had been stronger during the European session as investors priced-in a tapering in the near future by the European Central Bank. Given that the euro is weighted heavily against the greenback in the DXY, the euro’s decline was largely responsible for the DXY rallying higher.
The greenback’s future performance is likely to be influenced by the FOMC rate decision, which will be announced tomorrow.
The EUR/USD was trading at 1.1656 as at 15:27 GMT having declined from a daily high of 1.1711. The USD/CAD was trading at 1.2516 having rallied from a low of 1.2477.

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