Dollar Buoyed by Strong Consumer Confidence

The dollar closed higher against the yen and euro for the first time in five days, buoyed by a record high in the Nasdaq Composite, higher bond yields and 15-year high in U.S. consumer confidence. Although the USD returned some of its gains against the yen after failing to breach 117.60, USD/JPY held onto a respectable 0.30% gain to close Tuesday’s North American session at 117.45. EUR/USD was down 0.10% at 1.0456, idling between 1.04400 and 1.0460 for the entire U.S. session.

Overnight ranges were noticeably thin, with Hong Kong, the UK and Canada still closed for the Christmas holiday. An unexpected gain in the Japanese jobless rate raised demand for the dollar, but the move stalled at 117.40 and the dollar retreated back to 117.20. A second push through 117.40 and onto 117.60 resulted from an above-consensus gain in consumer confidence and the Richmond Fed manufacturing index. Unfortunately, the uptrade fizzled a second time as thin trading volumes exacerbated technical resistance at the 200-hour moving average.