US Dollar Drops on Consumer Confidence Miss Ahead of FOMC
US DOLLAR PRICE ACTION EDGES LOWER AS CONSUMER CONFIDENCE REPORT DISAPPOINTS
- The US Dollar Index dropped toward session lows immediately following the consumer confidence index release for October
- USD price action remains focused on a highly anticipated FOMC rate decision expected Wednesday
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US Dollar selling pressure picked up after the Conference Board’s US Consumer Confidence Index for October crossed the wires at 125.9, which compares to market estimates of 128.0 and prior reading of 125.1.
Forex traders pushed the US Dollar to session lows in response to the disappointing datapoint seeing that it also detailed further deterioration in consumer outlook with the future expectations component declining from 95.8 to 94.9.
One noteworthy excerpt from the October US Consumer Confidence report was how “expectations weakened slightly as consumers expressed some concerns about business conditions and job prospects.”
US DOLLAR INDEX PRICE CHART: 5-MINUTE TIME FRAME (OCTOBER 29, 2019 INTRADAY)
I noted in the US Dollar Price Volatility Report published yesterday that the USD price action could come under pressure if consumer confidence data spooked traders considering that the US consumer is the crux of the American economy.
Nevertheless, the headline consumer confidence index remains firm with current conditions improving marginally from 170.6 to 172.3. Also, it is worth mentioning that the market’s reaction to this morning’s US Consumer Confidence report is relatively muted ahead of the upcoming FOMC interest rate decision on deck for Wednesday’s trading session at 18:00 GMT.
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