US Dollar Burdened by Weak Consumer Confidence

August 16, 2022

Retail Sales and Fed Minutes Eyed

by Bog& Giulvezan

The greenback is hovering near a one-week low against to the highest degree of its John R. Major peers, following a unsatisfactory Consumer Confidence report released last Friday by the University of Michigan. The report posted a reading of 70.2 (the predic was 81.2), which is the lowest since 2022. Umteen analysts assign this degraded confidence level to the impervious-spreading of the new Delta variant of the COVID-19 virus.

Lately, it looks ilk every last data has few interest range implications and the pathetic consumer confidence report hurt bets for an premature tapering of asset purchases, which in turn cut the U.S.A Dollar mark. Adding to all of this was a worse than expected Core Cost-of-living index, which showed a 0.3% change, while the previous was 0.9% and the forecast was 0.4%.

The Dollar bill is trading just above 1.1780 against the Euro but the week is sprinkled with key events, which may lead to hyperbolic unpredictability and possibly another attempt to break support.

Key Events for the Week Ahead

The first releases with a pinched touch on the US Dollar bill are scheduled for Tuesday at 12:30 post-mortem examinatio GMT: the U.S. Retail Gross revenue and the Core version of the same indicator, which excludes automobiles from the calculation. Many often than non, the release of the Retail Sales triggers strong moves on the US Dollar pairs, so this is one to follow. The Retail Sales report is expected to display a change of -0.2%, and the Core version a 0.2% change; usually, numbers above expectations strengthen the greenback.

The Saame solar day, at 5:30 pm GMT, FRS Lead Powell will speak at an online town hall event. Audience questions are expected and this usually increases volatility.

Wednesday at 6:00 pm GMT, the Fed will sack the Minutes of their latest meeting, which contain in-depth insights into the reasons that determined the latest interest rank vote out. More significantly, the document may contain clues about the next value salary increas.

Technical Outlook – EUR/USD

After a near-touch of 1.1700 support, a weak dollar allowed the duet to climb above the previous S/R spirit level located at 1.1780. Despite this recent optimistic go, the boilers suit oblique cadaver bearish as long as price corset down the stairs the 50 days Moving Average and below the premature efflorescence (1.1900).

The twain's following proceed will be largely influenced past the Retail Sales data that comes out Tuesday and by Wed's FOMC Confluence Minutes but strictly from a specialized viewpoint, it's likely to escort another move towards the support at 1.1700.