- GBP / USD extends the daily bounce during US trading hours.
- Consumer confidence in the US weakened significantly in August.
- The US Dollar Index falls towards 92.50 after disappointing confidence data.
Following a consolidation phase around 1.3800 during European trading hours on Friday, the pair GBP/USD it gained traction and extended its daily rebound in the US session. At time of writing, the pair was up 0.35% on the day at 1.3851.
DXY pressed down after the data
Renewed USD weakness due to disappointing US consumer sentiment data appears to be driving GBP / USD higher.
The University of Michigan announced Friday that the Consumer Sentiment Index dropped to its lowest level since December 2011 to 70.2 in August. Additionally, the current consumer conditions index fell to 77.9 from 84.5 in June. Reflecting the negative impact of this report on the dollar, the US dollar index is losing 0.45% to 92.56.
Meanwhile, the benchmark 10-year US Treasury yield fell more than 3% on Friday, giving additional weight to the USD.
There will be no further US data releases for the remainder of the day and the pair is still on track to close the week in negative territory despite the latest rally.
Technical levels
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
