US Dollar remain bearish on latest US economy data

The US dollar remained bearish against its major counterpart currencies as the traders remain disappointed on the latest report showing a fall in U.S. income levels for the month of September further the consumer spending level has also increased.

The dollar index DXY which measure the US dollar movement against its six major counterparts also dropped to 77.051 as compared to 77.205 on Friday.

The traders maintain mixed sentiments and are looking up to scheduled Federal Reserve’s meeting on Wednesday. Till now the US dollar has considerably plunged on the negative news of US Central Bank large scale bond buying program.

It is expected that the US policy setting Federal Open Market Committee will meet on Wednesday to announce the second round of QE2 quantitative easing.

According to the latest numbers of commerce department US consumer spending increase 0.2% in the month of September, whereas incomes dropped 0.1%. Senior currency strategist Michael Woolfolk from Bank of New York Mellon added, “Today’s data reaffirms the need to engage upon a sustained QE program until inflation and unemployment return to more desirable levels.”

However many analysts believe that dollar will recover due to smaller size of Federal asset purchases.

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