FX Update: USDJPY suddenly points to a chink in USD bears’ armor
The US dollar staged either a comeback or a short-squeeze on Friday, depending on the USD pair in focus. It was a move that looked modest relative to recent weakening in the USD of late , but the back-up in USDJPY was particularly forceful and is the first chink of any note in the armor for USD bears. The next USD pair with pivotal levels coming into sight is AUDUSD ahead of a little-anticipated RBA meeting tonight.
July UK Consumer Confidence Index: The pain is real
The GfK consumer confidence index in the United Kingdom casts doubt on V-shaped recovery. In July, it remains in depressed territory, at minus 27 versus prior at minus 30 in June and expected at minus 26. The only bright spot is the pickup in personal financial situation over the next twelve months, which is mostly due to higher saving rate.