A surprise drop in U.S. consumer confidence and concerns about rising global tension between Russia and Turkey pushed the dollar down on Tuesday as investors sought out safe-haven currencies. The decline in consumer confidence, to its lowest since September 2014, accelerated moves out of the greenback despite positive data on the U.S. economy earlier in the day. U.S. gross domestic product grew 2.1 percent in the third quarter, a healthier clip than initially thought, the government said. The upward revision for GDP, one of the most important indicators of growth, could give the U.S. Federal Reserve the confidence to raise interest rates next month. However, investors preferred the Japanese yen and Swiss franc on Tuesday, as they seemed more concerned with events in the Middle East, where Turkish forces shot down a Russian plane near the Syrian border. Tuesday's flows into the yen and franc were also likely driven by technical positioning, said Scott Smith, senior market analyst at Cambridge Global Payments in Toronto, who added that he expects to see heightened volatility and choppy trading this week, which will be shortened by the U.S. Thanksgiving holiday.
Oil futures rallied on Tuesday, with the U.S. benchmark scoring its largest one-day gain in three weeks as tensions between Turkey and Russia raised concerns over the possibility of disruptions to energy output in the region.