US consumer confidence up in August
Daily Currency Update
The US dollar strengthened against its major rivals on Tuesday after data showed that US consumer confidence was up sharply in August.The Conference Board Consumer Index increased to 103.2 from 95.3 in July. This follows three consecutive monthly declines. The Expectations Index, which measures consumers’ short term outlook for labor market conditions, business and income, also increased to 75.1 from 65.6.
The US Dollar Index was trading at 108.98 at the time of writing.
Key Movers
EURUSD looked to be closing in on parity on Tuesday morning before losing its bullish momentum amid broad USD strength. A more hawkish European Central Bank (ECB) outlook and surprise reduction in gas prices helped alleviate pressure on the embattled euro yesterday. A key takeaway from last week was that the ECB remains committed to controlling inflation despite market concerns that tighter monetary policy could foster a deeper and longer recession. EURUSD was trading at 0.99853 at the time of writing.Expected Ranges
- EUR/USD: 0.9983 - 1.0049 ▼
- GBP/USD: 1.163 - 1.1752 ▼
- AUD/USD: 0.6862 - 0.6955 ▼
- USD/CAD: 1.2973 - 1.3102 ▲