Consumer confidence in the United States and the speech of the Fed Chairman returned optimism to the American dollar - Ester Holdings
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Consumer confidence in the United States and the speech of the Fed Chairman returned optimism to the American dollar

  • Consumer Confidence Index CB (Feb) in the USA, fact 131.4, forecast 124.7

Fig. 1. Chart of consumer confidence index CB in the USA

In addition to the very optimistic statistics on consumer confidence in the United States, the American dollar was supported by the speech of the US Federal Reserve Chairman, who noted expectations for a US economic growth of 3% and a very strong labor market. At the same time, inflation rates slowed down, but approached the target level of 2%. But, despite the favorable economic conditions, the Fed maintains concerns about market volatility, and conditions less favorable.

As a result, the US dollar index strengthened steadily on the Fed’s optimistic expectations. The absence of clear hints of raising rates and maintaining a waiting position on the part of the Fed will limit further US dollar’s growth.

The US dollar index remains in a downward channel despite attempts of growth, limited to resistance levels: 96.50 and 96.70. Support is located on the marks: 96.30 and 96.20-00.

Fig. 2. The US dollar index chart. The current price is 96.40 (10-year government bonds yield is the blue line)

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