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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

US dollar steady despite sharp fall in consumer confidence

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

EUR/USD forex trading Source: Bloomberg

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.

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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