According to the US Conference Board, consumer confidence is moving up. The headline number jumped from an upwards revised 101.8 in August to 104.8 now in September. The figure was predicted to drop to 98.1 points.
This is the highest level since 2007. Does this imply a bounce in consumer spending in September? Or even a move higher in the economy throughout the second half of the year? The Fed was disappointed by growth in the first half and is less hopeful for the second half, albeit a bounce is still on the cards. This figure raises the chances for a rate hike in December, Forex Chrunch reported.
The Current Conditions component is up from 125.3 to 128.5, expectations is up from 86.1 to 87.4 and “jobs hard to get” is down from 22.8 to 21.6 points.
Meanwhile, the dollar rose against the yen and a basket of currencies on Wednesday, with focus shifting to the Federal Reserve chair Janet Yellen’s testimony later in the day, Reuters reported.
Yellen will give her semi-annual testimony before a Congressional committee, and while it is set to be focused on financial regulation, traders said she is likely to asked questions about the Fed’s outlook on rates and the economy.
The dollar index was up 0.2% at 95.648, and regained ground against the yen. It was up 0.2% at 100.60 after setting a one-month low of 100.085 yen on Tuesday.
The euro was down 0.2% at $1.119. The euro had retreated on Tuesday as share prices in Deutsche Bank, Germany’s largest lender, fell to a record low on concerns about a $14 billion demand from the US Department of Justice.
