(CercleFinance.com) – The Dollar Index ended the week on a new decline (-0.2%) at 101.65: it is the second consecutive week of decline and the Euro ends symmetrically on a new increase of + 0.1% at 1.0735.
The Dollar was weakened by a decline in the ten-year Treasuries yield of -2Pts to 2.74% once morest 2.76% yesterday evening.
Note that the T-Bonds have remained locked up for 72 hours between 2.7100 and 2.785%, the weekly balance sheet is a small improvement of -4 Pts which remains insignificant if really the ‘minutes’ of the FED were less ‘hawkish’ than expected (lots of speculation regarding this, as well as the inflation ‘peak’ behind us).
Today’s US figures only partially explain the greenback’s decline: US household spending increased by 0.9% in April compared to the previous month in the United States, according to the Commerce Department (consensus of the market +0.7%).
The cost of fuel has obviously increased spending, but consumers have also been ‘buying ahead’ as credit conditions tighten and car prices rise.
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