Consumer confidence in the US fell to a 21-month low in June, with households a bit more pessimistic about business and labour market conditions amid concerns about a recent escalation in trade tensions between the United States and China. Consumers are seeing the trade war with China as an increased risk which appears to have shaken consumers’ confidence.
The confidence figure gives an assessment of the current U.S. economic climate, as well as consumer expectations for the coming six months. Growing risks to the economy, especially related to the trade war with China, and low inflation prompted the Federal Reserve last week to signal interest rate cuts beginning as early as July.
President Donald Trump last month imposed additional tariffs of up to 25% on $200 billion of Chinese goods, prompting retaliation by Beijing. Trump has threatened more duties on Chinese imports if no deal is reached at a Group of 20 nations summit this week in Japan.
Fed Chair Jermome Powell also spoke on Tuesday evening, where he stressed that the central bank must remain independent from Donald Trump and his demands. Trump has regularly called for a cut in interest rates, and has called out other central banks on their dovish stances. This happened recently when he accused ECB Chair Draghi of manipulating the currency.
10:15 – GBP: Inflation Report Hearings
13:30 – USD: Core Durable Goods Orders expected to increase to 0.1%