Dismal U. of Michigan Confidence Survey to Curb U.S. Dollar Strength

U. of Michigan Confidence Survey to Narrow to 99.3 in Mar After Unexpectedly Picking Up a Month Prior. 12-Month Inflation Expectations Have Held Steady during Annualized 2.7% for Last Three Readings.

– EUR/USD Risks Further Losses as Exchange Rate Snaps Higher Highs Lows, Relative Strength Index (RSI) Extends Bearish Formation.

Trading a News: U. of Michigan Confidence

DailyFX Calendar

Minor revisions in a U. of Michigan Confidence consult might hint a singular reaction, though a noted downtick in a sign for domicile view might hint a bearish greeting in a U.S. dollar as it curbs bets for 4 Fed rate-hikes in 2018.

Another collection of muted information prints entrance out of a U.S. economy might quell a new decrease in EUR/USD as it instills a enervated opinion for growth, and a Federal Open Market Committee (FOMC) might eventually exercise a dovish rate-hike during a Mar 21 seductiveness rate preference as acceleration continues to run subsequent a 2% target. In turn, a flourishing array of Fed officials might plan a some-more shoal trail for a benchmark seductiveness rate as ‘ a integrate of members voiced regard about a opinion for inflation, saying small justification of a suggestive alleviation in a underlying trend in inflation, measures of acceleration expectations, or salary growth.

Nevertheless, another above-forecast imitation might keep EUR/USD underneath vigour as Chairman Jerome Powell and Co. seem to be on march to exercise aloft borrowing-costs over a entrance months, and a executive bank might continue to strike a hawkish tinge for financial process as ‘almost all participants continued to expect that acceleration would pierce adult to a Committee’s 2 percent design over a middle tenure as mercantile enlargement remained above trend and a labor marketplace stayed strong.’

IMPACT THAT THE U. OF MICHIGAN CONFIDENCE SURVEY HAD ON EUR/USD DURING THE PREVIOUS PRINT

February 2018 U. of Michigan Confidence

EUR/USD 5-Minute Chart

EUR/USD 5-Minute Chart

U.S. domicile view suddenly softened in February, with a U. of Michigan Confidence consult climbing to 99.9 from 95.7 a month prior. The sign for destiny expectations also increasing to 90.2 from 86.3 in January, while 12-month acceleration expectations reason solid during an annualized 2.7% for a third uninterrupted month.

Despite a singular reaction, EUR/USD struggled to reason a belligerent during a North American trade, with a span shutting a day during 1.2409. Want more insight? Join DailyFX Currency Analyst David Song LIVEto cover a uninformed updates to a U. of Michigan Confidence survey.

EUR/USD Daily Chart

EUR/USD Daily Chart

  • EUR/USD appears to have noted a unsuccessful try to exam a March-high (1.2446) as it snaps a new array of aloft highs lows, with a span during risk of giving behind a miscarry from a month-low (1.2155) as a Relative Strength Index (RSI) extends a bearish arrangement carried over from a prior month.
  • The 1.2230 (50% retracement) segment sits on a radar, with a subsequent downside area of seductiveness entrance in around 1.2130 (50% retracement) followed by a Fibonacci overlie around 1.1960 (38.2% retracement) to 1.1970 (23.6% expansion).

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— Written by David Song, Currency Analyst

To hit David, e-mail dsong@dailyfx.com. Follow me on Twitter during @DavidJSong.

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