Yen lower as US consumer confidence boosts investor interest in riskier assets

[RTFX-Trading]

Yen lower as US consumer confidence boosts investor interest in riskier assets

What’s new?
Germany: GDP shrinks in 1st quarter.
United States: Consumer confidence rose to 54.9.
United States: GM bankruptcy nears as bondholders reject a debt for equity swap.

Today:
08h45 Euro zone: French Consumer Confidence survey May, exp -40.0, previous -41.0
13h00 United States: MBA Mortgage Applications May, previous 2.30%
16h00 United States: Existing Home Sales Apr, exp $4.65M, previous $4.57M
16h00 United States: Existing Home Sales M/M Apr, exp 1.80%, previous -3.0%
16h00 United States: Hose Price index M/M Mar, exp 0.20%, previous 0.70%

Overnight Rates & Indices:
EURUSD: 1.4001 – 1.3947.
USDCHF: 1.0874 – 1.0826.
GBPUSD: 1.5980 – 1.5924.
EURJPY: 133.51 – 132.77.
USDJPY: 95.48 – 94.93.
DowJones: 8’473 +2.37%.
NASDAQ: 1’750 +3.45%.
S&P 500: 910 +2.63%.
Nikkei: 9’434 +1.33%.
Gold: $950
Oil: $62

Comments:

The Yen fell on Wednesday as an increase in US consumer confidence sparked renewed investor interest on riskier assets, including currencies which are more likely to recover quickest given economic improvement.

The Pound climbed to a six-month high against the Yen reaching 152.54, while the US dollar tested 95.50 against the Japanese currency. The Euro also gained against the Yen reaching a high of 133.51. The Australian dollar reached its strongest levels in nearly eight months against the US dollar at 0.7887. The Euro fell to below 1.39 on Tuesday against the dollar and is still trading below 1.40 Wednesday as the greenback received some support on Tuesday, after a two-year US debt sale attracted solid demand.

The US consumer confidence soared in May to 54.9, its highest level in eight months and much better than forecasts for a reading of 42.0. The data boosted hopes of an economic recovery and helped lift US stock markets.

The greenback received some support on Tuesday after a two-year US debt sale attracted solid demand. However, two more sales are scheduled this week which should provide further insight into the current US debt situation.

Good Day
Emman Xuereb
RTFX Ltd
Head Office

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