US Dollar Holds Gains Despite Consumer Confidence Drop
US Dollar Analysis & News
- US Consumer Confidence Drops to Lowest Level Since February 2021
- Corporate Month End Prompts USD Upside
The latest US Conference Board consumer confidence fell to the lowest level since February, the headline reading dropping to 109.3, below expectations for 114.5. as the spread of the Delta variant continued to dampen optimism,. While spending intentions for homes, autos and major appliances continued to pullback. The Conference Board noted in light of back to back declines indicate that consumers have grown much more cautious over short-term growth prospects and are likely to curtail spending going forward.
The reaction in the USD has been muted with the data largely playing second fiddle to the current market narrative. As I mentioned earlier, corporate month end has typically coincided with USD strength.
Trade Smarter - Sign up for the DailyFX Newsletter
Receive timely and compelling market commentary from the DailyFX team
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.