Market Analytics and Technical Considerations
Key Points
For the second consecutive month of losses, the Conference Board Consumer Confidence Index dropped in. As of right now, the Index is fallen from 102.2 in October to 100.2.
Following the report, DXY declines and returns to the daily region of support, which was previously resistance.
For the second month in a row, CB Consumer Confidence declines
The Current Circumstance Index, which measures consumer perceptions of the state of the business and labor mobility, dropped from 138.7 to 137.4 previous month.
The Outlook Index, which measures consumers’ near-term expectations for business, employment, and income circumstances, dropped from 77.9 to 75.4.
A closer look at the Current Circumstance Index reveals that aspirations of “good” economic circumstances increased while expectations of “poor” economic conditions decreased, showing that pessimistic expectations for the near future were the main cause of the general decrease in the CB consumer confidence data (six months).
According to speculation, falling consumer confidence is a result of rising gas and food prices. Overall conditions worsen as a result of this and growing indications that the economy is slowing down, particularly for expensive products like homes. After the US CPI reading on November 10th, the US dollar has managed to fluctuate in line with market confidence. Yesterday, the dollar rose as the Fed unveiled its group of “raptors” ahead of Fed Chair Powell’s expected presentation tomorrow.
US DOLLAR BASKET (DXY) INSTANT RESPONSE
Prior to the data print, DXY crossed over the daily range. Immediately afterward, it moved drastically lower, returning to the previous area of resistance.
