US Dollar Gains Value Amid US Economic Growth
San Francisco (May 28) Today, on May 28th, the US Dollar keep on gaining value against other major currencies. The USD index is currently up by 0,08%. This became possible due to strong economic data from the USA, including durable goods orders and consumer confidence.
The index is showing the strength of the US Dollar against a basket of 6 other major currencies, with the Euro being the major one – contributing to more than 50% of the index. Yesterday, the local high set another local high at 80,47, thereby trading 80,45.
American Economy Recovers
As we have just mentioned, the index grew from 80,17 up to 80,47 after positive economic reports. The US department of Trade published a report on durable goods orders, which indicated a 0,8% increase as compared to the previous repotting period. The readings exceeded analyst expectations (0,7%).
Later on, Conference Board released a report on the US consumer confidence index. The data went up from 81,7 in April to 83 in May, The figures matched expectations.
The common European currency declined amid such strong figures and the expectations that the ECB may raise short-term interest rates.
As for US stock indices, they also gained some strength amid positive economic reports. S&P 500 increased by 0,6%, thereby setting a new high at 1 911,91 for the 12th time this year.
Dow Jones gained 0,4% to hit 16 675,50. Nasdaq increased by 1,2% up to 4 237,07. Apparently, the US stock market is getting rid of the fears that the US economy recovery is in jeopardy.
At the same time, the H4 chart of gold shows a decline after touching the bottom of the consolidation range close to 1 279,70. The touch was followed by sharp downswing to 1 268,20.