Home Daily Commentaries The Greenback gains strength following robust consumer confidence numbers

The Greenback gains strength following robust consumer confidence numbers

Daily Currency Update

USD - United States DollarThe US dollar index increases 0.10 percent this morning, after increasing around 0.30 percent this week in comparison with last week's close. President Trump was in Japan for the Memorial Day weekend where he attended several events with Prime Minister Shinzo Abe as the Asian nation continues to try to avoid becoming the next White House tariff target. He did mention that he is, “...not ready,” to make a deal and that tariffs could go up, “...very, very substantially, very easily,” against China. The USD/CNY pair is trading 0.24 percent higher this morning at 6.9235 (weaker Yuan). Another potential tariff target is the Eurozone, which has rejected a US suggestion for a quota to be placed on car exports to America. The EUR/USD pair trades flat at 1.1190 this morning.The Consumer Confidence Index improved in May, following an increase in April. The Index now stands at 134.1, up from 129.2 in April. “Consumer Confidence is now back to levels seen last Fall when the Index was hovering near 18-year highs," said Lynn Franco, Senior Director of Economic Indicators at The Conference Board.

Key Movers

The triumph of Nigel Farage's Brexit Party in the EU elections is dominating the race to succeed Theresa May as Conservative leader. The GBP/USD pair is weakening 0.09 percent and trading at 1.2667 this morning.In Asia, Alibaba Group is considering raising $20 billion via a second listing in Hong Kong. For Hong Kong, getting the listing seems reasonable, but there might be risks associated with such a large float, as some economists warn the demand for liquidity will soar local currency interest rates higher. The USD/HKD pair trades at 7.8483, which represents a fall of only 0.04 percent (slightly stronger Hong Kong dollar).

Expected Ranges

  • USD/CAD: 1.3430 - 1.3480 ▲
  • EUR/USD: 1.1175 - 1.1205 ▼
  • GBP/USD: 1.2655 - 1.2691 ▼
  • AUD/USD: 0.6912 - 0.6938 ▲
  • NZD/USD: 0.6534 - 0.6560 ▲