Dollar at the highs of the day against the euro and pound

The US dollar has sprung to life on the heels of a pair of strong reports. The Markit PMIs and the U Mich consumer sentiment survey both beat estimates.

Importantly, both are forward-looking indicators and help solidify the idea that the US economy has stabilized, if not turned slightly higher in the past couple months. Fears about the trade war have subsided and Fed cuts have boosted confidence and some activity (especially real estate).

That's reflected in the modest rally in the US dollar today. Since the numbers, it's touched highs against the euro and pound (which is struggling today on soft domestic data).

USD/JPY is a good spot to watch for a signal on what's coming next. The pair is testing the daily high of 108.71 but so far hasn't been able to break through.

Dollar at the highs of the day against the euro and pound

Update: USD/JPY has broken to the highs of the day.