US Consumer Confidence Survey Strong, US Dollar Rises Again!


Passing trading in the New York session yesterday, the US dollar found its strengthening pace again after the reaction to the latest published United States (US) economic data report.

The currency king managed to pare losses at the start of the week after the Conference Board (CB) consumer confidence survey data for May recorded an unexpectedly good reading that beat forecasts by exceeding the previous month's figure.

The figures recorded also show a rebound in consumer sentiment after declining for 3 consecutive months.

The dollar index (DXY) has returned to display a rebound to a level near 104.700 points after the previous fall reaching around 104.340.

While the 10-year treasury yield of the United States (US) jumped to a 4-week high of 4.55%.

The situation that happened is seen to match the predictions of analysts who warned investors at the beginning of the week for the US dollar to show its strengthening again.

However, until the end of this week investors are still advised to be careful and wait for more important data such as the US economic growth report for the first quarter and the PCE price index which is an indicator for the Federal Reserve (Fed).

If the latest data continues to show improvement, the Fed is seen as more inclined to maintain the existing monetary policy and expectations for interest rate cuts to be made will further decrease.

The probability of interest rates being lowered in September is 50-50. The expectation is still there, but the percentage is getting lower.

Gold trading continued a slow upward trend in yesterday's New York session even though the US dollar showed a recovery with the price of gold hovering around $2,360.