After a day of significant gains, the dollar lost some of the gains after the Consumer Board released the consumer confidence numbers. The data disappointed.
According to the board, the United States’ consumer confidence declined in February to 127.7 down from last month’s 130 and the expected 131.
The new decline reflected a scenario where more Americans are started questioning the chaotic White House. In the recent past, the president has purged the so-called adults in the room like H.R McMaster, Gary Cohn, and Rex Tillerson. He has replaced them with hawkish people like John Bolton, who advocates for war, Larry Kudlow, and Mike Pompeo.
Last year, the consumer confidence rose as people anticipated that the president’s team would help prevent him from making unconventional decisions. Recently, he has imposed tariffs, promised to undo NAFTA if he doesn’t get a good deal, and cancel the Iran nuclear deal. With John Bolton, he will likely do the latter.
The pair is currently trading at 1.2416, which is slightly higher than the level of 1.2372 which was reached yesterday. The upward trend could change today as traders get the GDP numbers from the United States.