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Consumer sentiment, which is expected to edge higher in June, and spending are the crucial factors in restoring the health of the US economy, in the opinion of FXStreet’s analyst Joseph Trevisani. If consumption resumes at a rapid pace, so will do the USD.  

Key quotes

“The preliminary Michigan consumer sentiment index is forecast to rise 75 in June from May’s 72.3 reading. The index for current conditions is expected to climb to 85 from 82.3 and the expectations gauge may increase to 70 from 65.9.”

“The damage to the American economy, the labor market and consumer sentiment from the pandemic public health measures, what Federal Reserve Chairman Powell called,’ the biggest economic shock to the US and the world in living memory,’ is unlikely to dissipate until there is a solid indication that jobs are returning. If that occurs then all else may follow.” 

“What is true for the consumer also applies to the US dollar, both await the arrival of a positive new narrative. Their immediate fates are, in fact, identical.”

 

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