Dollar trying to recover from Friday’ sell-off

The greenback is trying to erase some of Friday’s losses on Monday, although fresh buying seems to be lacking.

Earlier in the day, Chinese industrial production rose 6.4% year-on-year in July, and retail sales advanced 8.5% year-on-year in the same month, both lower than expected. 

On Friday, the US consumer sentiment collapsed to a decade low, according to the University of Michigan survey. Consumers cited roaring inflation and the unaffordability of housing as their concerns. 

The US dollar fell sharply after the survey as consumers are the main driving power of the US economy. If consumer demand falls notably, the GDP will also slow, most likely leading to more stimulus and money printing. 

Precious metals surged, and gold erased all weekly losses, posting a huge weekly bullish pin bar, possibly pointing to further gains this week. 

Elsewhere, US stock indices closed near or at new record highs on Friday as the long-term uptrend remains intact. Further gains are expected as long as monetary policy remains ultra-accommodative globally. 

Source: https://www.axiory.com/market-news/dollar-trying-to-recover-from-friday-sell-off