The US CB Consumer confidence rose to 81.5 points. was expected to tick lower from 80.3 to 79.6 (now revised up to 81.0) points, following the footsteps of the UoM Consumer Confidence number. This is a small positive surprise.
The US dollar was on the back foot towards the publication, losing earlier gains. The Japanese yen was strong. The dollar is now stronger against the euro and the yen in the initial reaction. EUR/USD is marginally lower at 1.3380, and USD/JPY is up above 97.40. GBP/USD is at 1.5539.
Update: the dollar strength didn’t last too long and currencies now stabilized.
The Richmond Manufacturing Index made a big surprise by rising to +14 points. It was expected to advance from -11 to -7 points. This is low tier indicator, but it adds to the positive dollar atmosphere.
Earlier, the S&P Case Shiller HPI showed a rise of 12.1% year over year, better than 11.9% expected and the higher rise in 7 years. The publication, which wasn’t a big surprise, triggered a correction: the US dollar sold off after gaining earlier.
The situation in Syria is drawing attention, and sending flows to the US dollar, the Japanese yen and the Swiss franc: the safe haven currencies.
Further reading: The Yen strengthens against its major peers as investors shed their holdings in Emerging Market economies
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