The Buck has been going down a slippery slope lately and nothing seemed to revive it. The risk currencies have been charging against the USD with the Euro and GBP taking the lead.
But the economic data from the US is trying to save the day for the Buck. US personal income, Chicago PMI and UoM consumer sentiment were really impressive.
Personal income was expected at 0.3% but it came at 0.4%. Remember that the higher income will turn into spending, so it doesn´t only paint a bright picture of the past month.
University of Michigan (UoM) also beat expectations. It wasn´t a huge jump, but it shows that the consumer sentiment is stabilizing, unlike the wild swings we´re used to seeing in the last few years.
But the champion today was the Chicago PMI. The consensus was for a 58 point reading, but this month´s number was a big surprise, it jumped to 65.7 PMI points.
The market has ignored the economic data recently and has focused mostly on other fundamentals such as the rhetoric from central banks and politicians. But today´s numbers from the US look pretty good and the market seems to be taking notice.
The steep decline of the USD against most major currencies during the last several months is not justified in my opinion, particularly if we look at the USD side of the coin. So hopefully, the market will come back to its senses and reverse some of the losses.
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