Forex: Dollar Index at 5-week low ahead of UoM consumer confidence
_iNVEZZ.com Friday July 26th:_ The US dollar has remained broadly down against the other majors in today’s trading so far, ahead of a much-anticipated release of US consumer sentiment data.
The Dollar Index, which tracks the greenback’s performance against the currencies of six major trading partners, dropped 0.5 percent today to 81.579, its lowest value since June 20.
Steven Saywell and Michael Sneyd, NP Paribas SA currency strategists, commented: “The dollar remains under pressure. While the arguments for a firmer dollar in the third quarter remain sound, risk-reward is not attractive for new dollar longs heading into next week.”
A final reading for the Thomson Reuters/University of Michigan Consumer Sentiment Index for July is due to be published at 14:55 BST today. Analysts’ are for 84, up from the preliminary reading of 83.9 issued on July 12 and close to the nearly six-year high of 84.5 in May.
Note: The UoM index monitors private citizen sentiment regarding personal finances, business conditions and purchasing power, using hundreds of telephone surveys. Especially valued for its quick turnaround, the University of Michigan Confidence survey is considered one of the foremost indicators of consumer confidence in the wider US economy.
Ahead of the UoM release the majors are trading as follows:
EUR/USD – 1.3275
GBP/USD – 1.5411
USD/JPY – 98.52
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