Markets find it hard to keep quiet ahead of the all-important FOMC meeting. The worse than expected durable goods orders hit the dollar across the board, but now it can recover.
CB Consumer Confidence jumps to 94.5 points in October, far better than 87.4 points expected. Together with an upwards revision to last month’s data, the greenback is back to life.
The correlation between consumer confidence and actual consumption isn’t always clear. However, if we look at the previous month, retail sales disappointed and so did consumer confidence. So, if the figure is positive now, can we expected a rebound in retail sales in October? We’ll only know in a few weeks time.
EUR/USD is falling and getting away from the 1.2750 line it challenged earlier. GBP/USD stalled its rise at 1.6180 and USD/JPY is back to battle 108 once again. AUD/USD already seemed to be ready to challenge 0.89 but retreated after touching 0.880. USD/CAD is up from the bottom of 1.1171.
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