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.