The “greenback” is strong again. Overview for 15.08.2022

EURUSD retreated; investors see the events unfold. 

The major currency pair is looking rather calm on Monday – market players are waiting for new catalysts. The current quote for the instrument is 1.0230.

Last Friday’s preliminary data on the Consumer Sentiment from the University of Michigan showed 55.1 points in August after being 51.5 points in July and against the expected reading of 52.5 points.

The components of the report showed that the Current Conditions dropped from 58.1 points to 55.5 points, while the Consumer Expectations rose from 47.3 points to 54.9 points. 

It is clearly seen that the Expectations have been improving for the second consecutive month. The reason for this might be a local decline in energy prices in the US – they are slowly moving away from all-time highs. One can hardly say that the situation has improved significantly, but it surely has become less frightening and shocking. 

This is exactly what supported the “greenback”.

Later this week, there will be plenty of reports on the US real estate market, which is expected to plummet due to higher interest rates. Also, investors should pay attention to the Retail Sales data – it also might be rather unimpressive for two obvious reasons – off-season and high prices.