The US Conference Board Consumer Confidence measure beat expectations with a score of 101 in August, the highest in nearly a year and above 97 points expected. The small downwards revision for July’s number does not seem to ruin the party.
The US dollar is on a roll since Friday’s Jackson Hole events. Fed Chair Yellen said, albeit with a lot of caution, that the case for a rate hike has strengthened. Her words were “clarified” by Vice Chair Stanley Fischer who said her words were consistent with a September rate hike.
Stronger consumer confidence implies more robust retail sales numbers. These will be released before the Fed decision on September 22nd. The bigger focus of the week is the monthly Non-Farm Payrolls report on Friday.
If the Fed is data-dependent as the Fed frequently says (including in Fischer’s interview today), this is a key report. The number of jobs gained as well as the rise in wages will be eyed carefully.
EUR/USD reached a new low at 1.1136, close to the weak cushion of 1.1130. Further support awaits at 1.1060. Resistance is at the post-Brexit recovery line of 1.1190.
More: Stormy September for EUR/USD
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