Dismal U.S. Consumer Confidence Survey to Curb EUR/USD Weakness

- Conference Board’s U.S. Consumer Confidence to Narrow for Second Consecutive Month in April to 126.0 from 127.7 the Month Prior.

- EUR/USD^[1] Eyes March-Low (1.2155) Amid Rising U.S. Treasury Yields. Relative Strength Index (RSI) Snaps Bullish Formation From Late-2017.

Trading the News: U.S. Consumer Confidence

Another downtick in the Conference Board’s U.S. Consumer Confidence survey may tame the recent decline in EUR/USD as it rattles expectations for four Fed rate-hikes in 2018.

A considerable deterioration in household sentiment may trigger a bearish reaction in the U.S. dollar^[2] as it dampens the outlook for growth and inflation, and the Federal Open Market Committee (FOMC) may stick to the current script at the next interest rate decision on May 2 amid ‘incoming data suggesting some slowing in the rate of growth of household spending and business fixed investment after strong fourth-quarter readings.’

However, a positive development may push the FOMC^[3] to implement higher borrowing-costs throughout 2018, and the rise in U.S Treasury yields may keep the greenback bid as ‘members expected that economic conditions would evolve in a manner that would warrant further gradual increases in the federal funds rate.’ Sign up and join DailyFX Currency Analyst David Song LIVE^[4] to cover the updates to the U.S. Consumer Confidence survey.

Impact that the U.S. Consumer Confidence survey has had on EUR/USD during the last print