The weakening of the U.S. dollar began on Wednesday, December 23 as the DXY index fell by 0.25 percent at around 90.41while the EUR/USD exchange rate decreased by -0.41% to 1.2187.
Nancy Pelosi, the speaker of the US House of Representatives, expressed her willingness to address President Donald Trump’s plan to raise the amount of compensation to people from $600 to $2000 as part of an incentive package that improves the likelihood of passing this bill in the near future.
Moreover, in terms of publishing macroeconomic figures for the United States, Wednesday was a very busy day. Thus, the amount of orders for durable goods rose by 0.9 percent m.o.m in November compared to a 1.8 percent m.o.m rise a month earlier, which was higher than the +0.6 percent m.o.m consensus estimate.
Data on the number of initial applicants for unemployment claims also became known: the value of the indicator decreased by 89,000 at the end of last week, to 803,000, while analysts predicted a less substantial decrease to 885,000.
At the same time, in terms of personal income and spending, a negative trend was reported. Thus, Americans’ personal income decreased by 1.1 percent in November compared to a decrease of 0.6 percent in October, which was worse than the consensus estimate of -0.3 percent. At the same time, against analysts’ forecasts of -0.2 percent m.o.m and a rise of 0.3 percent m.o.m a month earlier, the decline in personal spending for the same duration was 0.4 percent m.o.m.
There was also a range of University of Michigan indicators published. According to the final report, the consumer expectations index rose by 4.1 percentage point in December to 74.6 points, which was 0.1 percentage points below the preliminary estimate. The final consumer confidence forecasts and current indexes of conditions for December were also revised downwards-by 0.6 points, to 80.7 points, and to 1.8 points, to 90 points, respectively.