Article / 30 August 2016 at 22:23 GMT

US Market Wrap: Confident consumers lift US dollar

FX Trade Strategist /


  • Japan: Industrial Production  2305 GMT

US data released

  • Consumer Confidence August (Actual 101.1 vs. forecast 97.0) 
  • Case-Shiller Home Price Index June (Actual 5.1% vs forecast 5.2%, y/y) 
  • API Weekly Crude Stocks change (Actual 942,000 m/b vs. previous 4.464 m/b)
New York traders followed the lead of Europe and bought dollars to start the day. EURUSD opened at 1.1180, USDJPY was at 102.30 and GBPUSD was at 1.3080. That was a sign of things to come. The dollar buying became rather frantic following the release of the Conference Board’s Consumer Confidence Index. The index was at its highest level (101.1) in almost a year.  

EURUSD dropped to 1.1133 and USDJPY soared to 103.13 before drifting slightly lower into the close. GBPUSD rallied but those gains were erased by the end of the day.

The rally in the US dollar took the shine off gold and snapped an intraday rally in oil. WTI had climbed to $47.46 from an opening level of $46.93 but plunged to $46.19 immediately following the Consumer Confidence release. Adding to oil's woes was the end-of-day news that the weekly API report showed a build of 942,000 barrels.

US equity traders were not all that worried about the US dollar’s rise or the consumer confidence data. The three major indices closed in the red but essentially just gave up yesterday’s gains. In Canada, Agrium (AGU: TSE) and Potash Corporation of Saskatchewan (POT: TSE) confirmed merger talks to create a $30-billion-dollar company.

 The rally in the US dollar took the shine off gold. Photo: iStock


Are you wondering what's up with the world's central banks? Saxo Bank's Chief Economist, Steen Jakobsen may have some answers in this video: What is going on with central banks?: Jakobsen

Michael O'Neill is an FX consultant at IFXA Ltd. Follow Mike or post your comment below to
engage with Saxo Bank's social trading platform.

Missed a day? Here’s what we had to say during our Asian session and our regular European Morning Markets, From the Floor and Mid-session Europe.
Relevant articles for you


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail