Forex News – USDJPY jumps after Consumer Confidence unexpectedly rises
August 27, 2013 2:19 pm
The U.S dollar rose against the yen after data showed that the U.S. Conference Board’s Consumer Confidence Index rose to 81.5 in August from 81.0 (revised up from 80.3). This gain was surprisingly good considering the median estimates were for a dip to 79.0.
USDJPY jumped from a pre-data level of 97.39 to 97.50 within minutes of the news.
It is hoped that with stronger consumer confidence this would translate into more borrowing and spending, which would bolster job growth and increase economic activity in the U.S.
Meanwhile earlier in the day, housing data was released to show U.S. single-family home prices rose in June, according to the S&P/Case Shiller composite index.
The index was based on 20 metropolitan areas and showed a rise in prices by 0.9 percent on a seasonally adjusted basis. Prices rose 1 percent in May. On a nonadjusted basis, prices rose 2.2 percent.
Compared to a year earlier, prices were up 12.1 percent, in line with economists’ expectations. Prices were up 12.2 percent in the year to May, the biggest gain in more than seven years.
The U.S dollar rose against the yen after data showed that the U.S. Conference Board’s Consumer Confidence Index rose to 81.5 in August from 81.0 (revised up from 80.3). This gain was surprisingly good considering the median estimates were for a dip to 79.0.
USDJPY jumped from a pre-data level of 97.39 to 97.50 within minutes of the news.
It is hoped that with stronger consumer confidence this would translate into more borrowing and spending, which would bolster job growth and increase economic activity in the U.S.
Meanwhile earlier in the day, housing data was released to show U.S. single-family home prices rose in June, according to the S&P/Case Shiller composite index.
The index was based on 20 metropolitan areas and showed a rise in prices by 0.9 percent on a seasonally adjusted basis. Prices rose 1 percent in May. On a nonadjusted basis, prices rose 2.2 percent.
Compared to a year earlier, prices were up 12.1 percent, in line with economists’ expectations. Prices were up 12.2 percent in the year to May, the biggest gain in more than seven years.
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