US: UoM Consumer Confidence drops to 89.8 in August vs. 92.1 expected
|- Trump administration's trade policy weighs on market sentiment.
- US Dollar Index edges lower with initial market reaction.
In the final version of its Surveys of Consumer, the University of Michigan lowered the Index of Consumer Sentiment to 89.8 from 92.1 reported in the previous estimate.
"The Consumer Sentiment Index posted its largest monthly decline in August 2019 (-8.6 points) since December 2012 (-9.8 points)," noted Richard Curtin, Surveys of Consumers chief economist. "The 2012 plunge reflected widespread fears of being pushed off the “fiscal cliff” due to rising taxes and falling government spending. The recent decline is due to negative references to tariffs, which were spontaneously mentioned by one-in-three consumers."
The initial market reaction dragged the US Dollar Index below the 98.50 mark but the selling pressure faded away quickly. As of writing, the index was posting small daily gains at 98.49.
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