Investing.com - The dollar strengthened against most major
currencies on Tuesday after a widely-watched gauge of U.S. consumer
confidence beat expectations.
Many investors were eager for heavy-hitting news from the
Federal Reserve and the Labor Department later due out this week to
point to a more robust economy, which also boosted the
In U.S. trading on Tuesday, EUR/USD was down 0.21% at
The Conference Board reported that its consumer confidence index
rose to 90.9 in July from an upwardly revised 86.4 in June. It was
the highest reading since October 2007, defying consensus forecasts
for a decline to 85.3.
The data sent investors betting that the Federal Reserve on
Wednesday will make fresh cuts to its monthly bond-buying program
and deliver an upbeat take on the U.S. economy.
Fed asset purchases which have stimulated the economy off and on
since the 2008 crisis coupled with low interest rates tend to
weaken the dollar by sending investors to stocks, while talk of an
end to such loose policies often bolsters the U.S. currency.
While markets expect the Fed to wrap up its bond-buying program
this year-likely some time in or around October-uncertainty still
persists as to how much time will pass after stimulus programs
conclude and rate hikes begin, with data driving investor guesses
on Fed timetables.
Hopes for a robust July jobs report due out on Friday also
firmed the greenback.
Elsewhere in the U.S., investors took in stride the S&P/Case
Shiller Home Price Index.
The 20-city composite index for May grew 9.3% year-over-year,
down from April's 10.8% reading, though the 10-city index grew
9.4%, down from April's 10.9%, though markets have priced in
slackness in the U.S. housing sector.
The dollar was up against the yen, with USD/JPY up 0.24% at
102.10, and up against the Swiss franc, with USD/CHF up 0.30% at
The greenback was up against the pound, with GBP/USD down 0.23%
The dollar was up against its cousins in Canada, Australia and
New Zealand, with USD/CAD up 0.49% at 1.0853, AUD/USD down 0.22% at
0.9385 and NZD/USD down 0.58% at 0.8498.
The US Dollar Index, which tracks the performance of the
greenback versus a basket of six other major currencies, was up
0.24% at 81.31.
On Wednesday, the dollar will move on the Fed's statement on
interest rates and monetary policy as well as revised
second-quarter U.S. GDP growth data and also on the ADP report on
private sector job creation.
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