US dollar steady despite sharp fall in consumer confidence

Sterling gives up ground on new election polls. Labour making gains against Conservatives.

The greenback held steady in morning New York trade despite news that the US consumer continues to feel skittish about economic prospects, with a gauge of consumer confidence registering an unexpected and sharp decline.

US consumer confidence fell for the fourth month in row in October, defying predictions that the survey would register an increase. A leading indicator, meaning that the survey gives insight into future economic activity, consumer confidence fell to a five-month low and has now registered its longest string of monthly declines in seven years.

Despite this quite gloomy news – consumers account for well over 75% of economic activity – the key EUR/USD pair barely reacted, trading little changed around $1.1012.

Election polls

Elections continue to be the main driver in GBP/USD, which gave up ground early Monday in New York on news that the Labour Party – whose big spending platforms and perceived anti-business bias are generally unpopular with financial market participants – is eking out gains versus the Conservative Party.

The Conservatives, though, still hold a commanding 10+ point lead in polls. News of a possible strong Conservative victory in the December UK general election has usually led to a rally in sterling on perceived Brexit certainty, even though a new Brexit deal would have to hammered out by Prime Minister Boris Johnson if he is re-elected.

GBP/USD gave up most of Monday’s gains, falling about 40 pips early in New York trading around $1.2855.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.