• The Forex Majors remain under pressure from a stronger dollar.
  • Consumer confidence data improve
  • Impressive results on Wall Street.

This week, the dollar continues its upward trend against the other major currencies in the forex market. The U.S. dollar index, which tracks the currency’s movement against a basket of other currencies, hit a high of 91.2 last week. The markets continue to perform very positively, with the major indices on Wall Street still hovering around their all-time highs. The expected rise in consumer confidence will no doubt support this positive sentiment today.

Majors under pressure but resilient

The British pound and the euro remain under the influence of a stronger US dollar this week. Nevertheless, both levels have held up and the EUR in particular has shown the strength that traders have been lacking lately.

The single currency is trading just below 1.21, although it has rebounded from its lows earlier in the day, clearly benefiting from further progress on KOVID-19 vaccines and news that US tourism will be well received over the summer. Sterling is also struggling with internal rumours about Prime Minister Boris Johnson and controversial comments he denies, and is trading just below 1.40.

Consumer confidence continues to recover

Rapid job growth and a decline in new vehicle registrations have had a major impact on consumer confidence in the United States. The figures released today appear to confirm analysts’ expectations that the figure would rise to 113.00 in April – further evidence that the economy is picking up steam as the country reopens.

The strength of retail sales, which rose 9.8% in the previous month despite stimulus measures, can be seen as another factor explaining why data remain depressed during the extended freeze. The same reading came in at 91.3 in February, well above last month’s target, showing how quickly consumers are regaining confidence in the economy. These figures could also be significant for currency traders who see the rising dollar as an added bonus.

More heights on the day of a great victory

Wall Street posted more positive numbers yesterday, the NASDAQ closed much earlier and all indices are at or near record levels. Today is also marked by a lot of earnings releases from major companies for the quarter, with most managing to split estimates on both sides.

However, this is not always good for the stock price, and you can see that today as Tesla is down over 4% as of this writing, despite record profits and a struggle to beat expectations. Other big names announcing results yesterday after hours are Microsoft and AMD, while tech giants Apple and Facebook will announce results today after hours.

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