Belief in the US economy at the maximum

Yesterday's data released in the second half of the day provided significant support to the US dollar, while the political situation in Italy begins to gradually alienate investors from risky assets.

According to the Conference Board report, consumer confidence in the US increased in August this year.

Thus, the consumer confidence index rose to 133.4 points from 127.9 points in July, while many economists expected the index to fall to a level of 126.5 points. The index of current conditions also increased, together with the index of expectations.

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As noted in the Conference Board, a good labor market situation and strong economic growth have a positive impact on the assessment of households' trust.

Yesterday, a report was released from the US Department of Commerce, according to which in July 2018, the deficit of foreign trade in US goods rose to 72.2 billion dollars from 67.9 billion dollars in June. The data is preliminary, but despite this, it can be seen that the measures taken by the White House are not sufficient to reduce the trade deficit.

Export of goods for the reporting period fell to $ 140 billion compared to $ 142.5 billion in June, while imports rose to $ 212.2 billion from $ 210.4 billion in June.

Housing prices in the US have slowed slightly due to high mortgage rates and reduced availability of offers.

According to the report, the national housing price index in June rose by 6.2% compared to a year earlier, after rising by 6.4% in May. The index of housing prices for 10 megacities over the reporting period grew by 6%. Economists predicted that the previous price increase would continue.

A good report on the growth of production activity in the area of responsibility of the Federal Reserve Bank of Richmond helped strengthen the US dollar. According to the data, the production index in August this year rose to 24 points against 20 points in July. Economists predicted that the index in August will be 17 points.

Yesterday's statements, made by the US Treasury, did not impress investors.

Mnuchin noted that trade talks with Canada may end this week, and he expects to reach an agreement with Canada and is ready to move forward. The Minister was pleased with the progress that has now been made in the negotiations with China and the EU on trade issues.

The material has been provided by InstaForex Company - www.instaforex.com