Downtrend dollar, which has dominated the forex market this month, yesterday was again evident. This had several reasons - the index of consumer confidence from the Conference Board have been absolutely terrible (just confirmed the fact that the American economy needs a more flexible credit terms, including a weaker exchange rate), Richmond Fed Index was very weak, a U.S. consulting firm said on the Additional QE from the Fed, as an almost accomplished fact, and the Chinese official Yu (Yu) argued that the crisis of the dollar was inevitable due to the exceptionally high levels of debt. Atlanta Fed President Lockhart said that the debate surrounding the additional quantitative easing will soon intensify. After checking level 80 during the day and a little consolidation, the dollar index fell on the rise during the day and evening. At night, he fell to 78.83, a seven-month low. Later today the House of Representatives will discuss the so-called bill of the Chinese currency. Senator Schumer, who was one of those who promoted the current version of the bill, voted for that bill was passed by the Senate during the legislative session in mid-November. Interestingly, the People's Bank of China set the yuan's exchange rate at 6.6936 the night, the strongest level since then, as China announced in June the intention to let the currency more freely reflect market forces.
U.S. consumers are still shell-shocked. U.S. consumer confidence deteriorated again this month, as shown by the index of consumer sentiment from the Conference Board, fallen to just 48.5, well below expectations. The main driver of downward movement has become a component of expectations, as consumers are definitely about the future of employment. Separately, home prices remain weak, which showed growth of Case-Shiller index for 20 largest cities only 3,2% y / y in July.
U.S. household income is still falling. According to the U.S. Census Bureau, household income fell 3.0% last year to just over $ 50,000, the second consecutive year of decline.
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