US DOLLAR PUBLICATION
- USD Pricing operations hit major currency pairs this morning
- US dollar sales pressure is accelerating in response to consumer despair
- DXY index has dropped more than -0.3% compared to the session EUR / USD climbs, USD / JPY sinks
The US dollar sees a move on Friday morning. U.S. dollar pricing has traded in the background for most of the session, but the weakness is accelerating as markets digest the large shortage of the latest consumer interest report just released. Preliminary August consumer employment data showed a sharp decline in both the main index and the sub-components of current conditions and future expectations.
Consumer sentiment was 70.2, compared to the market forecast and 81.2 from the previous reading. According to a consumer survey, current conditions fell from 84.5 to 77.9, while expectations for the future fell from 79.0 to 65.2. The Moods report noted that the “stunning” loss of confidence, mainly due to fears of the COVID-delta variant, was one month larger than the main index.
DXY-US DOLLAR INDEX PRICE CARD: 15-MINUTE FRAME (AUGUST 13, 2021 INTRADAY)
To make it even more difficult for the fund, the consumer sentiment report showed inflation expectations for 5-10 years, rising to 3.0% from 2.8% reported in July. The Consumer Sentiment Report also highlighted how “consumers’ reaction to the delta’s modestly higher precautionary measures indicates difficulties in developing optimal policies”. In terms of market power, this is likely to further complicate the discussion of reducing the Federal Reserve and asset purchases. Not surprisingly, this is related to the greater weakness of the US dollar, given the greater likelihood FOMC officials drag their feet to slow down the timeline.
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