US Macro Data Disappoints, USD Back Lower
A bunch of macro data from USA came in worst than expected and puts fresh pressure to US dollar. The New Home Sales Change (Month on Month) came in -7.8% lower at 0.626M below economist’s forecasts of 1.9% and 0.68M for May. The United States Richmond Fed Manufacturing Index came in at 3 below analyst’s forecasts of 5 for June. The consumer confidence weakened in June with the headlines Confidence Index dropping to 121.5 in June from 131.3 in May.
After the news the dollar index (DXY) drops below 96 at 95.96, while the EURUSD rebounds from the daily low at 1.1376 up to 1.1396. It looks that the worst than expected news can drive euro above 1.14 as the figures support an immediate interest rate cut by the FED in July.