Forex Market: U.S. Consumer Sentiment Boosts the Dollar

The USD has a relief in today’s session, at least until the release of the report. Consumer sentiment, as measured by the University of Michigan, stood at 78.9 points, up from 72.3 the previous month. EURUSD falls to the 1.1250 level in the Forex market.

Wall Street is also breathing, with its main indices in green, after yesterday’s collapse. The Dow Jones is up 1.2%, as is the S&P 500, while the Nasdaq technology index is up 0.55%.

The active shelters are also recovering. Gold rises 0.35% to US$ 1,733, while BTCUSD climbs 1.6% to US$ 9,440.

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Consumer Sentiment Brings Relief to the Dollar
The pandemic continues to hit the United States hard, so the positive data on consumer sentiment indicates that Americans continue to have an appetite for future consumption. That’s good for the economy and the dollar.

While we are far from 100-point levels in the first months of the year, it is important that the world’s leading economy is rebounding. Since a retraction of consumption in the US directly and indirectly affects everyone.

The green banknote in mid-week traded for a few moments above the 1.14 resistance. At the time of publication, it is estimated to be up to 1,1250.

Another important advance for the dollar in the Forex market is against the British pound (GBPUSD), currently trading at the key support of 1.25. In the week it was negotiated above 1.28.

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Forex Market U.S. Consumer Sentiment Boosts Dollar
Forex market: Medium/long term analysis
Financial markets may be in the process of changing the price of the world’s most traded exchange rate, with derivative contracts suggesting that the euro could rise as much as 6% against the dollar to $1.20 by the end of the year, according to Reuters news network.

After years of inactivity, the single currency has already enjoyed a 6% rebound since mid-March. The general policy of the US Federal Reserve made the dollar more flexible, but more importantly, the euro zone finally opened up the taps and took a big step towards integration.

On June 18-19, the European Union will discuss a 750 billion euro game-changing recovery fund Bitcoin Code that requires the joint issuance of debt and cash grants to the poorest countries affected by the coronavirus.