Despite a release of bleak economic data from the US, poor figures from across the globe have caused the dollar to strengthen against most of its peers this morning. The stabilisation of U.S. Treasury yields also helped the dollar climb to a stronger position.
Yet another batch of poor economic data was released for the US yesterday, with data revealing a sharp fall in house building and a fall in consumer confidence.
The number of construction projects to build new US homes slumped by 8.7% last month, to its lowest rate in more than 18 months. It was then revealed that the Confidence Board’s index of American consumer morale has slipped 124.1 from 131.4 in February, dashing hopes of a rise to 132. This fuels concerns about a slowing economy and a possible recession.
The poor data seems to be reflective of the global economy, with China reporting that the profits from its large industrial companies have slumped and the Reserve Bank of New Zealand making a surprising change to its monetary policy.
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