USD Graphic Rewind 07.19
USD INDEX GRAPHIC REWIND
The dollar index got a much needed lift on Friday after being brutally beaten down for most of the week following some weak US data propping safe haven flows. US consumer prices fell by 0.1% in June indicating that the recovery is struggling to take hold as consumers save more and spend less, with moderate inflation it makes it less likely the Fed will hike rates in the near-term. The CPI data was closely followed by the UMich consumer sentiment report which plunged, lifting the dollar further. This negative fundamental sentiment was joined by Google and Citi both reporting weaker than expected revenue for Q2 which sent stocks sprawling. All these negative cues gave the dollar the lift we can see in the above chart going into the weekend. Over-night Asian stocks followed their US peers lower as concerns about the global recovery led to a flight to safety.
Looking ahead, with a very quiet economic calender today players will draw cues from larger trends, which have been mostly negative in the last few sessions. Earnings season continues in the US corporate sector, but is yet to provide much of a prop to risk appetite despite some firm results.
Written by Jonathan Granby, DailyFX Research Team
If you wish to receive Joel's reports in a more timely fashion, e-mail firstname.lastname@example.org and you will be added to the " " list.
If you wish to discuss this topic or any other feel free to visit our Forum page
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.