DailyFX: Currency Focus: Dollar Regains On Further Interest Rate Speculation

Reversing much of yesterday’s losses, the U.S. dollar strengthened onthe session after economic data inferred continued momentum in theworld’s largest economy.  Upticks in new housing sales, durablegoods orders and consumer confidence data helped the currency bounceoff of the 1.3050 close late Monday to a current figure of1.3145.  According to the U.S. Commerce Department, durable goodsorders surged 3.4 percent as orders for military aircraft more thandoubled to $7 billion with commercial airplane orders rising 50.4percent.  This recent figure offers optimism as it reverses the 2percent decline seen in the September report.  Excluding thevolatile transportations component, orders rose 0.3 percent for themonth.  New housing sales additionally contributed to the overallbid environment as consumers rushed to close in on residential propertyand lower mortgage rates before the imminent rise.  Hitting arecord level in October, sales of new single family homes jumped 13percent pushing sales to an annual rate of 1.42 million homes. Subsequently rising, consumer confidence was bolstered by dissipatingeffects of hurricanes in the Gulf region and lower crude oilprices.  According to the Conference Board’s survey, consumerconfidence rose to a reading of 98.9 against expectations of a leap to90.  Still hovering below pre-Katrina levels, the current figureis suggestive that confidence is returning among consumers and may bodewell as we head into the holiday season.
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