27.08 - will USD recover today?
- by Anna K.
After a very weak start of the week, where USD greeted us with a sudden plunge, when fears of trade war escalated on us. Dollar lost as much as 0.6 percent against the six major rivals which is the most for the last three weeks. Beijing answered Washington with imposing $75 billion worth of goods with tariffs starting December, 1. Following this statement Trump called American companies to find alternatives to Chinese market. Of course this behavior couldn’t possibly have had a good influence on USD that was already hanging by a thread. But today the situation may very well change, although the chances for that are slim.
Today we are waiting for a consumer confidence report – a report that is going to show us how confident US consumers in their perchance abilities and how much they are going to support their own economy and their own currency. It is a leading indicator of financial confidence as well the way to see the national economy through consumers’ eyes – a perfect possibility to assess the state of USD inside the country.
Of course, we have all the chances to see USD climb but the more we wait, the more obvious it can become – there is no guarantee that consumers are confident in their own goods and in their own currency for us to bring back the money to USD and invest into it. We are on the crossroads and the only thing we can do in order to find our way is to wait and see the report ourselves.
There are of course trading signals that can help us navigate the situation.