US Dollar Weakens Against Euro Despite Positive Consumer Confidence Data

The US dollar today weakened against its main trading partner, the euro, despite positive consumer confidence data as tracked by the University of Michigan. The US dollar was depressed against the euro largely due to the uncertainty emanating from the White House as due to President Donald Trump‘s recent comments.

The US Dollar Index, which tracks the performance of the US dollar against a basket of its peers, hit new daily lows below 93.40 during today’s session.

The US dollar was largely depressed against the euro for most of today’s session due to the turmoil being experienced in Washington DC. The release of the University of Michigan consumer confidence survey could not boost the US dollar, despite beating expectations. The index came in at 97.6, which is its highest level since January, as compared to the market expectation of 94.0. The UoM expectations index also exceeded expectations by coming in at 89.0 versus the expected 81.5.

The euro was slightly better than the greenback despite the fact that the Eurozone current account balance reported today was lower than expected. The current account came in at â‚¬21.2 billion missing the market expectation of â‚¬27.3 billion. The euro was also weighed down by the dovish stance outlined in yesterday’s European Central Bank minutes.

Given the empty US docket on Monday, the greenback’s future performance is likely to be affected by the release of the house price index on Tuesday, and political events over the weekend.

The EUR/USD currency pair was trading at 1.1746 as at 16:40 GMT having opened the day’s session trading at 1.1715. The USD/JPY pair was trading at 109.47 having rallied from a low of 108.57.

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