The EUR/USD currency pair has continued to push higher as consumer confidence in the US, the world’s largest economy rebounded in April as Americans feel more optimistic over the US economy’s future and their income prospects.
According to industry group The Conference Board, consumer confidence rose to 68.1 from an upwardly revised level of 61.9 in March. The reading beast economist expectations as they had been predicting a reading of 61.0
“While expectations appear to have bounced back, it is too soon to tell if confidence is actually on the mend,” Lynn Franco, director of economic indicators at The Conference Board, said in a statement.
Household wealth in the US is being stabilized by a combination of increasing property values, cheaper petrol prices and rising incomes. An increase in income may help fuel the pace of consumer spending which accounts for up to 70% of the USA’s economy.
The US Dollar fell against its peers as the positive data out of the US increased demand for riskier assets, denting the strength of the safe-haven currency. The economy was also supported by data that showed that home prices in 20 US cities climbed by their highest margin since May 2006.
Those expecting business conditions to improve in the next six months rose to 16.9 percent in April from 15 percent the prior month.
“Consumer confidence has been challenged several times over the past few months by such events as the fiscal cliff, the payroll tax hike, and the sequester,” Lynn Franco, director of economic indicators at the Conference Board, said in a statement. “Thus, while expectations appear to have bounced back, it is too soon to tell if confidence is actually on the mend.”
Current US Dollar (USD) Exchange Rates
As of 15:30 pm GMT
The US Dollar to Pound Sterling exchange rate is currently trading in the region of 0.6441
The US Dollar to Euro exchange rate is currently trading in the region of 0.7595
The US Dollar to Australian Dollar exchange rate is currently trading in the region of 0.9665
The US Dollar to Canadian Dollar exchange rate is currently trading in the region of 1.010
The US Dollar to Japanese Yen exchange rate is currently trading in the region of 97.2815
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