The dollar has a relief in today’s session, at least until the time of publication. The consumer sentiment, as measured by the University of Michigan, stood at 78.9 points, from 72.3 the previous month. The EURUSD drops to the level of 1.1250 in the Forex market.
Wall Street also breathes, with its main indices in green, after the crash of yesterday. The Dow advancing 1.2%, like the S&P 500, while the technology index Nasdaq climbs 0.55%.
For their part, the asset shelters are also retrieved. The gold is advancing 0.35% to US$ 1.733, while the BTCUSD climbs 1.6% to US$ 9.440.
The consumer sentiment brings relief to the dollar
The pandemic is still punished with force to the united States, so that the positive data on the consumer sentiment indicates that americans still have a good appetite for consuming in the future. That is good for the economy and the dollar.
While we are far from the levels of 100 points in the first few months of the year, it is important that you go to pick the first economy in the world. Since a retraction of consumption in the U.S. directly and indirectly affects the entire world.
Consumer sentiment the University of Michigan. Source: ForexFactory
The green ticket in mid-week of your quote for a few moments before the euro above the resistance of 1.14. At the time of publication it is appreciated to 1.1250.
Another important development of the dollar in the Forex market is to the british pound (GBPUSD) traded at these moments the key support for the 1.25. In the week came to negotiate above 1.28.
Foreign Exchange market: Analysis of medium / long-term
The financial markets may be in the process of changing the price of the type of change most traded in the world, with derivatives contracts that suggest that the euro could increase by up to 6% against the dollar to $ 1.20 by the end of the year, according to the chain of news Reuters.
After years of inactivity, the single currency has already enjoyed an uptick of 6% since mid-march. The general policy of the Federal Reserve of the USA. UU. eased the dollar, but, what is more important, the euro zone finally opened the faucets of spending and took a big step towards integration.
Between the 18 and the 19 of June, the European Union will discuss a recovery fund of 750 billion euros, which changes the game and requires the joint issuance of debt and cash grants to the poorest countries affected by the coronavirus.
To take into account for the next week
Next week will be loaded with data macros being the most relevant:
Tuesday 16 09:30: retail Sales in the U.S., which are planned to 7.4%, from -16.4% in the last month.Thursday 18 08:00: will Be known in the United Kingdom the decision of interest rate, which is expected unchanged at 0.1%.Friday, the 19th, at 14:00: FED chairman Jerome Powell will be speaking. Their words can be a key to the lock of the week.
The times expressed in GMT -3.