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The greenback fell across the board on Friday in tandem with U.S. yields as a surprise sharp drop in U.S. consumer confidence triggered broad-based long liquidation in the greenback
Reuters reported U.S. consumer sentiment dropped sharply in early August to its lowest level in a decade as Americans gave faltering outlooks on everything from personal finances to inflation and employment, a survey showed on Friday. The University of Michigan said its preliminary consumer sentiment index fell to 70.2 in the first half of this month from a final reading of 81.2 in July. That was the lowest level since 2011, and there have been only two larger declines in the index over the past 50 years. Economists polled by Reuters had forecast the index would remain unchanged at 81.2.
Versus the Japanese yen, dollar traded sideways in Asia before falling to 110.24 in European morning. Intra-day decline accelerated in New York and the pair tumbled to a one-week low of 109.55, weighed down by poor U.S. data together with a sharp fall in U.S. Treasury yields.
The single currency traded sideways in Asia before edging lower to 1.1731 in early European morning. The pair found renewed buying there and intra-day rise accelerated in New York morning on usd’s broad-based weakness following the release of U.S. consumer sentiment data and price later hit a 1-week high of 1.1804.
Although the British pound met renewed selling at 1.3816 and fell to a 2-week trough at 1.3791 in European morning on cross-selling of sterling especially vs euro, price erased its losses and rallied to as high as 1.3875 in New York afternoon on usd’s broad-based weakness.
Data to be released this week :
U.K. Rightmove house price, Japan GDP, industrial output, capacity utilization, industrial output, China house prices, industrial output, retail sales, U.S. New York Fed manufacturing index, Canada manufacturing sales and wholesale trade on Monday.
Japan tertiary industry activity, U.K. claimant count, ILO unemployment rate, employment change, average weekly earnings, EU construction output, employment, GDP, Canada housing starts, U.S. retail sales, redbook, industrial production, capacity utilization, manufacturing output, industrial production, business inventories, NAHB housing market index and New Zealand GDT price index on Tuesday.
New Zealand PPI inputs, PPI outputs, RBNZ interest rate decision, Japan machinery orders, exports, imports, trade balance, Australia Westpac leading index, wage price index, U.K. CPI, RPI, PPI input prices, PPI output prices, PPI core output, DCLG house price index, EU HICP, U.S. MBA mortgage application, building permits, housing starts and Canada CPI on Wednesday.
Australia employment change, unemployment rate, Swiss trade balance, exports, imports, industrial production, EU current account, U.S. initial jobless claims, continuing jobless claims, Philly Fed manufacturing index, leading index change and Canada ADP employment change on Thursday.
U.K. Gfk consumer confidence, PSNB, PSNCR, retail sales, Japan nationwide CPI, Germany producer prices, Canada retail sales and new housing price index on Friday.