US Consumer Confidence falls sharply – dollar retreats

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The UoM consumer sentiment dropped to 76.8 points. It was expected to edge up from 82.1 to 82.6 points. This is the preliminary figure for September and it is quite a disappointment, to say the least.

The dollar managed to recover from the weak retail sales data and rise towards the release. The dollar is weaker after the data.  Its strength was most pronounced against the euro, which also fell to new lows against the pound. EUR/USD now recovers from 1.3260 to around 1.3280. USD/JPY is down from above 99.60 to below 99.50.

It’s important to note that the dollar is not losing a lot of ground and after the initial fall, it is on the rise again.

Earlier, the US released retail sales and PPI data. Almost all the components disappointed, with retail sales rising less than expected. QE tapering will probably go through, but the message might be more cautious.

The Fed decision on QE tapering will be held on September 17-18. Only 5 days left until we hear the verdict.

Further reading: Taper doubts

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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