Dollar Continues Its Decline on Poor Consumer Sentiment

The US currency continued its decline against the major currencies today, as the internal macroeconomic reports suggested that the situation with the US consumer sector isn’t as good as it seemed.

The dollar has posted a third bearish day against the Japanese yen, a fifth bearish session against the euro and a sixth daily drop against the Great Britain pound. The current series of daily declines follows a rather long rally of the US currency.

December retail sales growth disappointed the dollar bulls, showing only a 0.6 percent value in contrast to the previous 0.8 percent. Thomson Reuters/University of Michigan has released a preliminary report of their consumer sentiment index for January, showing a from 74.5 to 72.7. The surveyed economists forecasted a growth to 75.5 for this indicator.

EUR/USD rose from 1.3349 to 1.3371 as of 16:18 GMT today, it reached 1.3456 during the early trading session. GBP/USD went up from 1.5829 to 1.5867, while USD/JPY declined from 82.75 to 82.66 today.

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