Currency traders were sent scurrying for cover as economic data released this afternoon showed a more resilient US economy than was expected. The US Dollar halted its decline as fx traders became more cautious. The Conference Board April Consumer Confidence Survey showed a rise to 109.6 from the March index level of 107.5. Expectations had been for a fall to 106.0. The National Association of Realtors reported sales of existing homes rose unexpectedly in March by 0.3% to a seasonally adjusted annual rate of 6.92 million, the expectation had been for a fall to 6.70 million.
The Bank of Canada raised rates to 4.0% from 3.75% as expected.

On the release of the statistics forex traders took the US Dollar 50 pips better against the Euro to 1.2365. While this sharp move has corrected slightly it has meant a European session close at just under 1.2400 which will keep the US Dollar bears at bay for at least one further day. However, this looks to be only a temporary situation. There are of course a series of hurdles that will need to be negotiated by forex traders before the US Dollar buckles under. More housing statistics tomorrow as well as Durable Goods Orders and then the Federal Reserve Chairman Ben Bernanke will testify on the Economy before the Senate joint committee on Thursday .