The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
It’s been a while since markets have received positive data from France, and news today that consumer spending has increased by 1.4% in the month is better than expected – certainly better than the 0.1% seen in October.
When one breaks down the numbers, however, it does appear that energy products account for a large percentage of the expenditure. So realistically, it’s not the stellar news that it appears to be on first glance.
Across the ocean, yesterday’s comments from the Fed’s Jeffrey Lacker are still helping to support the greenback, so the temporary move through 1.37 may well have provided a ‘sell on the rallies’ opportunity.
US durable goods and new home sales data are due to be released later today. The latter is expected to improve slightly on the 444,000 homes sold in the previous month – but anything better than 450,000 homes sold may punish the euro and aid the dollar bulls’ case further.
Support is still apparent at 1.3620.