• US CB Consumer Confidence Index recedes in November.
• The US Dollar Index remains on the back foot below 100.00.

US consumer sentiment lost momentum in November, as the Conference Board’s Consumer Confidence Index fell to 88.7 from a revised 95.5 (from 94.6), curtailing the previous recovery.

From the data release: “The Present Situation Index—based on consumers’ assessment of current business and labor market conditions—fell by 4.3 points to 126.9. The Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—fell by 8.6 points to 63.2.”

According to Dana M Peterson, Chief Economist at The Conference Board, “Consumer confidence tumbled in November to its second lowest level since April after moving sideways for several months.” She added that “All five components of the overall index flagged or remained weak. The Present Situation Index dipped as consumers were less sanguine about current business and labor market conditions. The labor market differential—the share of consumers who say jobs are “plentiful” minus the share saying “hard to get”—dipped again in November after a brief respite in October from its year-to-date decline. All three components of the Expectations Index deteriorated in November. Consumers were notably more pessimistic about business conditions six months from now.”

Market reaction

The US Dollar (USD) extends its ongoing leg lower, motivating the US Dollar Index (DXY) to break below the 100.00 support and flirt once again with its key 200-day SMA in the 99.80 region.