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US Consumer exceeded expectations and this triggers a fresh wave of USD strength. The Reuters / University of Michigan preliminary consumer sentiment for the month of May jumped from 76.4 to 83.7 points, significantly above expectations for a score of 77.9 points. The Conditions Index rose to 97.5 points, exceeding predictions for 89.9 points. The “Expectations” sub-component is at 74.8, more than 68.1 initially estimated.

EUR/USD slid under the support line of 1.2805 and fell as low as 1.2797 at the time of writing before ticking a bit. Update: EUR/USD rebounded quite fast back up, and is now around the previous levels of 1.2820. Lots of action.

USD/JPY is also on a roll following this data: the pair is at a new 4 year high of 102.81, after getting very close to 103. After hitting 102.96, the dollar is retreating to 102.82. The battle over 103 isn’t over. Update: USD/JPY made the move above 103, peaking at 103.11 before dropping a bit back.

More good news: the CB Leading Index rose by 0.6%, beating predictions of 0.3%. The previous number was -0.1%.

It is important to note that most US indicators this week came out below expectations. Such disappointment were followed by temporary dollar weakness. Towards the end of the volatile trading week, we are seeing choppy action.

One of the recent reasons for the dollar strength is a statement from FOMC member John Williams: he is known to be a dove, but nevertheless, he said that the Fed could begin tapering QE in the summer. When a dove turns hawkish, this is dollar certainly dollar positive.

Live chart of USD/JPY:  [do action=”tradingviews” pair=”USDJPY” interval=”60″/]