Confidence in the US economy jumped to the highest level since the beginning of the year as consumers saw promising prospects in the near term future of the world’s largest economy.  According to the Conference Board’s index of consumer confidence, economic optimism rose to an index reading of 64.5 – jumping over last month’s revised 55.2 reading.  This is the index’s highest reading since April of this year and counters previous pessimism seen in the fourth quarter on the heels of worsening labor market conditions and government infighting that caused a downgrade of the nation’s credit rating.

Sub index readings of the overall report lent further optimism to the market as present condition marks jumped to 46.7 from a 38.3 in the month – the highest since September of 2008.  Expectations of the next six months also improved to climb to a reading of 76.4 – with more respondents seeing opening employment opportunities and higher pay potential early next year.

The report’s results are helping to compound brighter results from last week’s jobless claims announcement, which fell to the lowest level in almost 4 years.  According to US Labor Department releases, first time claimers of jobless benefits dropped by 4,000 to 364,000 for the week ending December 17th.  The measure reading is the lowest since April 2008 and lends hope to a labor market that has been battered for most of the year.

As a result, major currencies are receiving a bit of a boost, given the relatively light volume ahead of the global new year holiday.  Nonetheless, traders are helping to bid up both the Euro and the British pound on the news – climbing higher by 0.04% and 0.22% respectively.