It was a mixed day of results for the US yesterday as US consumer confidence posted a surprise decline and new homes sales rose more than expected.
US Consumer Confidence
US Consumer Confidence retreated from its 16-year high this week, with the numbers falling more than expected. The Conference Board reported on Tuesday that US consumer confidence dropped to 120.3 from a revised 124.9 in March. Although analysts were expecting a small decline to a reading of 122.5 in April, the size of the decline caught the markets by surprise. The US economy, the largest in the world, is 70% consumer driven. However, the financial markets were little moved by the data as investors continued their focus on other issues. The main focal point for many investors was the negotiations to avert a government shut down over the weekend. Also distracting investors was a surprise increase in New Home Sales
US New Home Sales
In a report released by the Census Bureau on Tuesday, official data showed that US New home sales increased unexpectedly last month. US New home sales increased to a seasonally adjusted annual rate of 621K, from 587K. February’s figure was revised down from 592K. The surprise decline came after analysts had expected new home sales to drop to 583K in March.
Mixed Data
The mixed set of data results sent the US Dollar down to a six month low against the Euro. Since then, the US Dollar has rallied. The US Dollar Index which measures the greenback against a basket of six weighted currencies, was up 0.15%. The EUR/USD is down 0.28% and the GBP/USD is down 0.18% at time of writing.
