Dollar climbs after rising U.S. consumer confidence

By IBTimes Staff Reporter | December 29 2009 10:51 AM

The U.S. economy released its consumer confidence showing that it climbed to 52.9 from the upwards revised reading of 50.6, which is lower than the projected 53.0, although the reading did not meet expectations, yet investors were filled with optimism as rising confidence meant that slight recovery is taking place in the U.S. The upbeat data gave the dollar some support to start rising versus major currencies, yet on the daily charts it is depreciating.

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The euro-dollar pair we see on the one-hour charts using the momentum indicators decline as a result of the U.S. data that moved the markets as investors were placing orders ahead of the data, looking forward to rising confidence. Currently the pair is being traded at 1.4420 between the support of 1.4405 and the resistance of 1.4433 while recording a high of 1.4457 and a low of 1.4353.

Turning to the pound dollar pair, we see also is declining despite the low volume in markets ahead of year-end while the United Kingdom markets were closed yesterday due to Boxing Day. For the GBP/USD is currently being traded at 1.5988 between the support of 1.5977 and the resistance of 1.6023 while recording a high of 1.6067 and low of 1.5980 so far.

As currently investors are seeking higher yielding assets from the wave of optimism in the markets and rising stock markets, they are avoiding the lower yielding asset, which is the yen, therefore causing it to decline against the federal currency. The USD/JPY is being traded at 91.77 while recording a high of 91.79 and a low of 91.51 while there is a support at 91.55 and a resistance at 91.90.