The dollar has relief in today’s session, at least until the time of publication. Consumer sentiment, measured by the University of Michigan, stood at 78.9 points, from 72.3 the previous month. The EURUSD falls to the level of 1.1250 in the Forex market.
Wall Street is also breathing, with its main green indices, after yesterday’s crash. The Dow Jones advanced 1.2% like the S&P 500, while the Nasdaq technology index climbs 0.55%.
For their part, the active shelters are also recovered. Gold advances 0.35% to $ 1,733, while BTCUSD climbs 1.6% to $ 9,440.
Consumer sentiment brings relief to the dollar
The pandemic continues to hit the United States hard, so the positive data on consumer sentiment indicates that Americans continue to have an appetite for future consumption. That is good for the economy and the dollar.
Although we are far from the 100 point levels in the first months of the year, it is important that the world’s leading economy pick up. Since a retraction of consumption in the US directly and indirectly affects everyone.
The greenback mid-week traded for a few moments against the euro above the resistance of 1.14. At the time of publication it is appreciated up to 1.1250.
Another important advance of the dollar in the Forex market is against the pound sterling (GBPUSD), currently trading at the key support of 1.25. During the week, trading was above 1.28.
Foreign Exchange Market: Analysis in the medium / long term
Financial markets may be in the process of changing the price of the world’s most traded exchange rate, with derivative contracts suggesting that the euro could rise as much as 6% against the dollar to $ 1.20 by year-end, the chain reports. of Reuters news.
After years of inactivity, the single currency has already enjoyed a 6% rebound since mid-March. The general policy of the US Federal Reserve. USA It made the dollar more flexible, but more importantly, the eurozone finally opened the taps of spending and took a big step towards integration.
Between June 18 and 19, the European Union will debate a game-changing € 750 billion recovery fund that requires the joint issuance of debt and cash grants to the poorest countries affected by the coronavirus.
To consider for next week
Next week it will be loaded with macro data, the most relevant being:
- Tuesday 16 at 09:30: US retail sales, which are forecast at 7.4%, from -16.4% last month.
- JThursday 18 at 08:00: The interest rate decision will be known in the United Kingdom, which is forecast unchanged at 0.1%.
- Friday 19 at 2:00 p.m.: Fed President Jerome Powell will speak. Your words may be key to the end of the week.
The times expressed with GMT -3.