While last week saw the U.S Dollar drop against many of the other major currencies, the greenback appeared to be coming back strong after a solid housing report helped boost investor confidence. Monday's Existing Home Sales report led to major gains for the Dollar against its primary counterparts.
The report, which came in well above expectations, revealed that home sales increased for the second straight month. As a result, the greenback shot up versus the British Pound and Australian Dollar, to name a few. The GBP/USD dropped over 100 pips since yesterday afternoon and is currently trading around the 1.4360 level. The AUD/USD fell even more broadly, dropping from 0.8320 to its current level of 0.8200.
Today, traders will want to look out for the CB Consumer Confidence report set to be released at 14:00 GMT. U.S consumer confidence has steadily increased over the last several months. This month should be no different as analysts are forecasting a figure of around 59.1 compared to April's 57.9.
The Dollar may be able to prolong its rally in the marketplace should the report come in as predicted. At the same time, consumer confidence has been notoriously hard to predict in the past. Any result below 59.1 could lead to gains for European currencies like the Sterling and Franc.