The dollar sell off continues: markets waited for US data to be released and then a new wave of selling was unleashed, regardless of the actual figures.
A big breakout was seen in USD/JPY, which dropped under the July 11th low of 98.21. Also GBP/USD is peeking above 1.54. EUR/USD is at 1.3280.
The revised University of Michigan consumer sentiment figure set the score on 85.1, better than 84 that was expected. The initial number was 83.9. Nevertheless, markets only waited for the data to resume the sell off.
Apart from the headline number, inflation expectations fell from 3.3% to 3.1%. Conditions slid from 99.7 to 98.6 while the expectations component advanced from 73.8 to 76.5 points.
Earlier in the day, Japanese inflation numbers came out stronger than expected. This usually weakens the yen. Not this time. Now, USD/JPY fell off the 98.21 level and reached 97.97 before climbing back above 98. It could find some support at the round 97 number.
Further reading: EURUSD: Prices to go up before falling – Elliott Wave Analysis
