- Consumer confidence in June deteriorates in the United States.
- 10-year US T-bond yield drops below 2%, Wall Street remains in red.
- FOMC Chairman Powell is scheduled to talk about the monetary policy later today.
Despite the broad selling pressure surrounding the greenback, the USD/CHF pair staged a modest rebound today as investors started to speculate the possibility of the Swiss National Bank intervening in the market to stop the CHF from gathering further value. After climbing to 0.9775, however, the pair failed to preserve its strength and, once again, turned south and dropped to 0.9720 area to retrace its daily rebound. As of writing, the pair was up only 10 pips on the day at 0.9728.
Today’s data from the U.S. showed that the Conference Board’s Consumer Confidence Index dropped to its lowest level in nearly two years in June. Commenting on the data, “The Conference Board’s consumer confidence index declined to 121.5 in June from April’s revised 131.3. A much more modest drop to 131.2 had been predicted. “The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence,” wrote Lynn Franco, Senior Director of Economic Indicators in the statement accompanying the release,” noted FXStreet senior analyst Joseph Trevisani.
Other data revealed that new home sales declined by 7.8% on a monthly basis in May and the Richmond Fed Manufacturing Index dropped to 3 in June from 5 in May.
Following the disappointing data releases, the US Dollar Index stays near the 96 handle as markets are waiting for FOMC Chairman Powell to deliver his remarks on the monetary policy later in the day. Meanwhile, the 10-year Treasury bond yield slumped below the 2% mark today, suggesting a risk-off atmosphere that benefits the safe-haven CHF.
Technical levels to watch for
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