Good Afternoon
The US Dollar strengthened against most currencies after the US
consumer confidence report was released. After reaching a peak the US Dollar
has traded in a higher range and should remain there for the rest of the
day.
The Consumer Confidence report was
released and came in better than expected at 76.2. This high number for
the consumer confidence report comes from a stronger US housing market which is
currently at a seven year high, increasing the value of the US Dollar against
all currencies. Strong consumer confidence and housing market may restart talks
of quantitative easing which can take place as early as June. If the FOMC
decides to reduce quantitative easing in June this may lead to further
increases in the value of the US Dollar.
We are waiting for tomorrow when the Bank
of Canada will announce interest rates and the Germany will release their
Unemployment data. When these are released we can expect to see some volatility from markets that are waiting for any news to cause movement.
Yonah
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