USD Continues to Decline After Consumer Confidence Data

The US Dollar has been declining since the start of US trading on Tuesday, continuing the downward trend that began at the end of last week following the release of the Federal Reserve meeting minutes and Jerome Powell’s comments at the Jackson Hole symposium.

These comments highlighted a potential interest rate cut in September, expectations that were further reinforced by statements from Mary Daly, a member of the Federal Open Market Committee, who also leaned towards a rate cut at the committee’s next meeting.

A batch of data has added to the pressures on the US Dollar, indicating an increase in US consumer confidence in August. The Conference Board Consumer Confidence Index rose to 103.3 in August from the previous reading of 101.9, reflecting an improvement that positively impacted risk appetite in global financial markets.

The Dollar Index, which measures the performance of the US Dollar against a basket of major currencies, fell to 100.74 from the previous daily close of 100.85. The index reached a high of 100.93 during the current trading day, with a low of 100.71.