Dollar In Retreat As Weak Consumer Data Adds To Soft Inflation
Today’s economic calendar was a good follow up to the Fed’s decision to leave rates unchanged at the end of its two day meeting yesterday. The central bank’s favored inflation gauge cooled to a new multi-year low, while weak consumer spending numbers added another facet to the concerns for the economy.
The dollar’s tumble was clearly seen in the EURUSD’s take off. The pair made one more test of1.3430 support before taking off on a gradual 110-point climb to 1.3540. USDCHF threw the market off after its push through resistance yesterday evolved into a false break and then sharp sell off this morning. After 120 point drop for the greenback, USDCHF was trading near 1.2215 support with few technical levels in the vicinity. Interestingly enough, the usually active British pound was conservative in its advance against the dollar as the pair rose only 65 points from overnight lows before finding a weak ceiling at 2.0075. Finally, it was a battle of the weakest for USDJPY as the pair spent most of the day in a 30 point range below 123.55.
Dollar In Retreat As Weak Consumer Data Adds To Soft Inflation