Currencies and commodities – consumer confidence in US collapses – economy

The euro appreciated significantly on Friday after weak US consumer confidence. By early evening, the common currency was trading at $ 1.18. That morning it had cost $ 1.1729. The consumer climate in the United States surprisingly and considerably darkened in August. The consumer confidence index collected by the University of Michigan even fell to its lowest level since 2011. Analysts expected the value to be unchanged. Consumers fearing that economic development will slow in the coming months, the university justified the decline. The hope of a weakening of the pandemic had been disappointed. In addition, the prices of goods imported into the United States rose less than expected in July, which could indicate lower overall price pressure. The data somewhat dampened expectations that the US Federal Reserve may soon give clearer signals for an exit from its very accommodative monetary policy. As a result, the dollar came under pressure against almost all major currencies.

Faced with disappointing economic data, investors turned to gold. The precious metal’s troy ounce rose 1.4% to $ 1,776. In addition, concerns about the spread of the delta variant of the corona virus were reflected in the higher price, as gold is also used as a cover.

Prices have fallen in the oil market. Here, too, concerns about measures taken by major industrialized countries against the delta variant have been the focus of attention. A barrel of the North Sea Brent variety was 0.7% cheaper at $ 70.82. In many industrialized countries, the number of corona infections is increasing and with it investor concerns about mobility restrictions. This could lead to lower demand for oil.

Related Articles

Back to top button