* US Consumer confidence rises to 54.1 in August from an upwardly revised 47.4 in July, surpassing all expectations.
* US CaseShiller Home price report also beat expectations up 1.4% in June and falling 15.4% y/y
* Bank of Canada’s Deputy Governor Timothy Lane warns that the strong C$ was threatening the Canadian economic recovery.
An interesting session across all investment classes as stronger than expected house price and consumer confidence failed to inspire markets to add to the risk on scenario. Eur/Usd came into the North American session on the up as Eur/Gbp buying again dominated after Eur/Usd had hit a low of 1.4252 in European trading. The double whammy of positive US data saw offers at 1.4340 move to one side, but the follow through was meagre. With stocks unable to add to their gains Eur/Usd soon came under pressure returning to the low 1.4300 area.
Eur/Gbp again garnered a lot of support knocking out a barrier option along the way at 0.8750. Usd/Cad rallied strongly from 1.0780 to 1.0850 after the BOC raised their concerns over the strength of their currency.
Elsewhere the failure by Oil to breach the $75 level caused a big sell off, with Oil now down over $3 from their highs. Stocks also failed to hold gains made on the data.