Dollar Retreats as Weak Consumer Confidence Misses Estimates

The US dollar retreated as traders focused on a weak consumer confidence report and reacted to falling oil prices. The Consumer Confidence index decreased from 92.2 in June, revised from 91.2, to 90.8 in July, missing analyst forecasts of 92.3.

The strong pullback in oil markets pushed Treasury yields lower, which was bearish for the American currency. As a result, the US dollar index is trying to settle below the support level at 101.15-101.30.

EUR/USD rebounded as traders focused on the sell-off in oil markets and falling Treasury yields. The yield of 2-year Treasuries pulled back towards the 4.26% level, while the yield of 10-year Treasuries settled below 4.60%. EUR/USD gained ground, supported by its strong sell-off in the oil markets.