Global macro overview for 13/06/2016:
The US consumer sentiment report was released last Friday, and it slightly beat the expectations, but on the other hand, it is still worse than last month's figures (94.3 vs. 94 and 94.7 prior). The University of Michigan index measures consumer sentiment towards the economic policy in the US, so the low reading could mean that consumers might increase their savings and delay spending if the pace of job creation does not accelerate. Moreover, consumers suppose that inflation will have a minimal impact on their real incomes since long-run inflation expectations plunged 0.2 percentage points to 2.3% to a record low. In conclusion, the poll revealed that consumers became more concerned about the US economy.
Let's now take a look at the US Dollar index technical picture on the daily time frame. It is quite possible that the index has made a higher low at the level of 93.42, and now the bulls are trying to break out above the 21 and 50 DMA in order to secure their control over this market. Nevertheless, there is still another important higher high to be violated by bulls, which is really the key level for them, if they want to reignite the bull run - this level is at 95.98.