- Consumer Trust Index in the US is set to show a slight decline in August.
- The US dollar index remains stable around 98.20.
In August, U.S. consumer sentiment appears to be losing momentum as the conference committee’s consumer confidence index has dipped to 97.4 from a revised 98.7, breaking its previous upward trend.
This part is based on a preview for the upcoming Consumer Trust Report by the US Congress Committee, expected at 11:00 GMT in August.
- An investigation by the conference committee anticipates that consumer confidence in the US will remain limited in August.
- The report may offer further insights into consumer perspectives following the latest inflation and job data.
- The US Dollar Index is expected to find support near the 97.50 level.
The Conference Committee will release the Consumer Trust Index for August on Tuesday. This monthly survey collects data on consumer behavior, expectations, purchasing intent, and plans for vacations.
The report includes indexes that gauge current perceptions of business and labor market conditions, as well as forecast indexes that provide a short-term outlook on income, business, and employment.
Overall, there’s a projection for consumer confidence to reach 96.4 in August, down from 97.2 in July. The index had previously dropped to 95.2 in June.
By July, the current index slipped to 131.5, yet the expected index rose to 74.4.
Impact of the conference committee report on the US dollar
The US Dollar Index (DXY) saw selling pressure on Friday after Chairman Powell’s cautious remarks at the Jackson Hole Symposium.
“If DXY drops below the significant level of 96.37 (from July 1), the next major support level could be around 95.13 (from February 4) and then 94.62 (from January 14),” said FXSTREET senior analyst Pablo Piovano.
“Conversely, the first resistance level is at 100.25 (from August 1). A decisive break beyond that would open the way to 100.54 (from May 29) and the May peak of 101.97 (from May 12),” Piovano noted.
“The relative strength index (RSI) is currently around 46, indicating that the average direction index (ADX) is close to 13, suggesting a lack of strong trends, and the momentum index appears weakened,” he added.
Key Economic Indicators
Consumer Trust
This monthly consumer confidence index from the Conference Committee measures sentiment among US consumers, reflecting general business conditions and anticipated trends over the upcoming months. It encompasses consumer attitudes regarding spending, vacation plans, inflation, the labor market, stock prices, and interest rates. Essentially, it captures the willingness of consumers to make purchases, which significantly impacts the US economy. High readings typically favor the US dollar, while lower figures can be detrimental. Note: The FXStreet Economic Calendar does not disclose a figure for this indicator due to committee restrictions.
Last Release:
July 29, 2025, 14:00
Frequency:
Monthly
Actual:
–
Consensus:
–
Previous:
–
Source:
Conference Committee
US Dollar FAQs
The US dollar (USD) serves as the official currency of the United States and is also extensively used in various other countries alongside local currencies. As of 2022, it remains the most traded currency globally, making up over 88% of foreign exchange transactions, or around $6.6 trillion each day. Post-World War II, it surpassed the British pound to become the global reserve currency. Historically backed by gold, the dollar lost that standard in 1971 with the Bretton Woods Agreement.
Monetary policy implemented by the Federal Reserve has the most significant impact on the US dollar’s value. The Fed aims to maintain price stability and promote full employment, primarily through interest rate adjustments. When inflation exceeds the 2% target, for instance, the Fed usually raises rates, bolstering the dollar’s value. Conversely, lowering rates can weaken it, especially when inflation is low or unemployment rates are high.
In certain extreme situations, the Federal Reserve may opt to print more money, enacting quantitative easing (QE) to significantly enhance the flow of credit in the financial system. This measure is typically used when economic conditions are so tight that banks are hesitant to lend. For example, QE was a crucial tool during the 2008 financial crisis. The process usually leads to a depreciation of the US dollar.
Quantitative tightening (QT), on the other hand, reverses this process. Here, the Federal Reserve ceases purchasing bonds from financial institutions and stops reinvesting in maturing bonds. Generally, this is seen as beneficial for the value of the US dollar.
