Consumer Sentiment, US Dollar – Talking Points
- Univ. Of Michigan Sentiment Jul P: 51.1 (est 50.0; prev 50.0)
- Inflation and growth concerns continue to weigh on sentiment
- US Dollar lower as markets battle over potential 100 bps rate hike
US Consumer Sentiment rose during June, as Americans remain worried about persistent inflationary pressures. 1-year forward inflation expectations fell from 5.3% to 5.2%, while 5-10 year expectations dropped to 2.8% from 3.1% in May. This solid report may cool bets on a 100 bps rate hike in July, as it was an upside surprise in 5-10 year inflation expectations back in May that caused the Fed to raise by 75 bps instead of 50. The upside surprise on sentiment bolstered risk assets, with both the Nasdaq 100 and S&P 500 gaining more than 1% premarket. The US Dollar remained on the backfoot following the release, with EURUSD pushing further away from parity into the weekend.
US Economic Calendar
Courtesy of the DailyFX Economic Calendar
Stay tuned, more to follow…
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— Written by Brendan Fagan
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