The US Dollar has strengthened against Pound Sterling and the Euro after the University of Michigan’s consumer confidence data beat economist expectations.
The American currency was hit by a mixed bag of data on Friday after the MNI Chicago Report’s business barometer dropped to 51.6 in June, down from the 58.7 recorded in May, which had been the highest level recorded in more than a year.
The data showed that Business activity in the country slowed more than expected in June as fiscal constraints and a continuingly stagnant export market harmed manufacturers. The data has increased speculation that the Fed will refrain from tapering its stimulus measures if the economy shows signs of a faltering recovery.
“A large part of it reflects pullbacks in government spending,” Guy Lebas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, said before the report. “That’s having effects, although not massive effects. The manufacturing sector doesn’t appear to be accelerating but it’s not deteriorating at least.”
Countering the disappointing Chicago data the University of Michigan Confidence survey also beat economist expectations, this time in a positive way.
The survey which measures personal finances, business conditions and purchasing power is based on hundreds of telephone surveys. The figure rose from 82.7 recorded in May to 84.1 in June coming close to a six year high.
“Consumers believe the economic recovery has achieved an upward momentum that will not be easily reversed, To be sure, few high or low income consumers expect the economy to post robust gains or think the unemployment rate will drastically shrink during the year ahead,” survey director Richard Curtin said in a statement.
US Dollar (USD) Current Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6558
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7660
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0812
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 99.0051
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0476
(Correct as of 15:30 pm GMT)
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