The dollar realised losses yesterday after mixed economic data on consumer confidence and pending home sales failed to support the currency. The National Association of Realtors pending home sales report showed little change in the number of homes under contract yet to be sold. Although analysts had originally expected a 0.4% decline, the figure rose by 0.2% month on month.
Lawrence Yun, chief economist at the NAR commented on the figure saying "The housing market is closing the year on a stronger note than earlier this summer, backed by solid job creation and an economy that has kicked into a higher gear,".
However gains in the dollar were limited by weaker than expected consumer confidence data after the conference board's main gauge fell to 122.1 in December from a revised reading of 128.6 a month earlier, undershooting economists expectations for a reading of 128.2.
Reports published yesterday by a leading research group showed that the UK’s boxing day sales fell by 5.2% this year. Beyond this, consumers were also seen to be prioritising online shopping, leaving a notable drop in footfall for high street sales.
Although some retail analysts have blamed the drop on Novembers ‘Black Friday’ sales, others have pointed to a combination of high inflation and weak wage growth which continues to hurt demand for the pound.
13:30 – USD - Unemployment Claims; Forecast at 245K against a previous of 241K.
16:00 – USD - Crude Oil Inventories