All change as the Dollar enjoys unexpected good news

Good Morning,

The rollercoaster ride I wrote about on Friday is still very much happening.  

After a poor day for the Dollar on Monday, we saw a marked improvement yesterday after stronger than expected US consumer confidence data and a falling oil price.  This will probably boost sentiment amongst property investors too - US properties are proving immensely popular with Brits given the GBP/USD rate.

EUR/USD fell rapidly to a 5 week low onto a main support point at 1.5550, a drop of 2 big figures on the day from the 1.5756 opening. This dragged down EUR/GBP to 0.7965 (GBP/EUR higher to 1.2714) as GBP/USD lagged behind only to play catch up a little but still 1 1/2 cents lower at 1.9800.  

It will be interesting to see how the Eurozone consumer and economic confidence comes in shortly. A poor number will suggest that they have the worst to come while the US may have a chance of turning round sooner, especially if the oil price can be capped.