US dollar extends losses as US consumer morale slumps
Philip McHugh July 15th 2024 - 2 minute read

The US dollar selling bias remained firmly in place on Friday amid another deterioration in US consumer sentiment.
Meanwhile, the pound is mixed so far this morning, with GBP/EUR subdued at €1.1908 and GBP/USD slipping to $1.2972. GBP/CAD is muted at CA$1.7715, while GBP/AUD holds steady at AU$1.9162 and GBP/NZD climbs to NZ$2.1296.
Coming up, will a speech by the head of the Federal Reserve help to revive the US dollar’s fortunes today?
What’s been happening?
The US dollar closed last week’s session on the back foot, with the currency striking new multi-month lows.
Reinforcing the recent USD selloff was the publication of the University of Michigan’s US consumer sentiment index, which reported household morale in July slumped to its worst levels since November.
This offset the release of the latest US producer price index, which reported producer inflation rose at a faster-than-expected pace last month.
The euro’s negative correlation with the US dollar offered some support to the single currency on Friday, although these gains remained limited in scope amid ongoing French political jitters.
In contrast, the pound continued to appreciate through the end of last week’s session, as the perceived stability of the UK’s new government makes Sterling increasingly attractive to investors.
What’s coming up?
Turning to this week, the focus at the start of the session looks to be a speech by Federal Reserve Chair Jerome Powell.
If Powell’s comments echo the hawkish remarks he made last week when testifying before Congress, we could see the US dollar attempt to claw back some of its recent losses.
In the meantime, the euro could face headwinds this morning with the Eurozone’s latest industrial production figures. Economists forecast factory output in the bloc will have contracted for a second consecutive month in May.
Finally, the absence of any notable UK economic releases may limit movement in the pound today, particularly as GBP investors brace for several high-impact releases later in the week.
Written by
Philip McHugh