The US Dollar has soared against all of its most traded peers after the latest consumer confidence and house price data smashed economist expectations.
According to the Conference Board, a New York based private research group, consumer confidence in the economy leapt to a five-year high in May after confidence was bolstered by a better outlook for business and hiring opportunities. The consumer confidence index rose in May to 76.2, its second consecutive increase. The figure is a big improvement of Aprils reading of 69.0 and makes it the highest figure since February 2008.
Adding to the optimism generated by the confidence data Home prices in the United States rose to their highest level in seven years as the recovery in residential real estate gained momentum. According to the S&P/Case-Shiller Index of property values property prices increased by 10.9% from March 2012 to March 2013, the biggest yearly gain since April 2006.
The housing recovery is giving consumers more confidence to spend, said Laura Alber, president and chief executive officer of Williams-Sonoma.
“We’re not sure whether there’s truly a housing recovery that’s going to be sustainable yet, but we are seeing that they are spending money to redecorate,” Alber said. “Whether they’re moving or not, it’s time to get some new stuff in your home after a period when I think people didn’t feel comfortable spending money on their homes.”
The better-than-expected data has also raised speculation that the US Federal Reserve may choose to ease up its quantitative easing programme in the near future as the US economy continues to post positive data. The next big movement for the US currency will come on Thursday with the latest US jobs claims data.
Current US Dollar (USD) Exchange Rates
The US Dollar/Pound Sterling Exchange Rate is currently in the region of: 0.6642
The US Dollar/Euro Exchange Rate is currently in the region of: 0.7773
The US Dollar/Australian Dollar Exchange Rate is currently in the region of: 1.0370
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 102.4507
The US Dollar/Canadian Dollar Exchange Rate is currently in the region of: 1.0369
The Pound Sterling/US Dollar Exchange Rate is currently in the region of: 1.5054
The Euro/ US Dollar Exchange Rate is currently in the region of: 1.2863
(Correct as of 15:35pm GMT)
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