USD: US Consumer Sentiment Dips in June Amid Lingering Inflation Worries
US consumer sentiment came at 65.6 in the June month from 69.5 in the May month, Consumer in the US feels more higher inflation and savings is less due to higher interest rates. One Year inflation expectations are 3.3% and 5 Year inflation expectations are 3.1% from 3.0% printed in the last month. US Dollar moved up after the reading came.
USDJPY is moving in Ascending channel and market has rebounded from the higher low area of the channel
Consumer sentiment in the United States declined in June, reflecting heightened concerns among households about inflation and income levels, according to a survey released on Friday by the University of Michigan.
The preliminary reading of the overall index of consumer sentiment for June was 65.6, down from a final reading of 69.1 in May. This figure fell short of economists’ expectations, who had anticipated a reading of 72.0, as per Reuters.
Joanne Hsu, Director of Surveys of Consumers, noted that assessments of personal finances weakened due to growing worries about high prices and declining incomes. She highlighted that overall, consumers perceived minimal changes in the economic conditions compared to May.
Regarding inflation expectations, the survey indicated that one-year inflation expectations remained steady at 3.3%. However, the outlook for inflation over the next five years edged up to 3.1% from 3.0% reported in the previous month.
USD: Michigan 5-Year Inflation Expectations Inch Up to 3.1% in June
In June, US consumer sentiment declined to 65.6 from 69.5 in May, reflecting heightened concerns about inflation and reduced savings amid higher interest rates. One-year inflation expectations held steady at 3.3%, while five-year expectations increased slightly to 3.1% from the previous month’s 3.0%. Following the release of these figures, the US Dollar strengthened.
According to the most recent update on June 14, 2024, Michigan’s five-year inflation expectations have increased to 3.1%. This slight rise contrasts with the stable reading of 3.0% observed in May 2024, indicating a modest uptick in consumer expectations regarding future inflation in Michigan. This change underscores persistent concerns within the economic landscape. Analysts are closely monitoring this development as it could impact monetary policy decisions and economic forecasts in the region in the coming months.
USDCHF is moving in Descending channel and market has reached lower low area of the channel
The shift from 3.0% in May to 3.1% in June signifies a subtle yet noteworthy change in sentiment, underscoring the fluid nature of economic perceptions amidst evolving market dynamics.
USD: Michigan Consumer Sentiment Falls to 65.6, Missing Analyst Expectations
In the latest report for June, consumer sentiment in the United States dropped to 65.6 from 69.5 recorded in May. This decline underscores growing worries among consumers about inflationary pressures and diminished savings in light of elevated interest rates. One-year inflation expectations remained unchanged at 3.3%, while projections for inflation over the next five years saw a slight uptick to 3.1% from the previous month’s 3.0%. Subsequent to the release of these findings, the US Dollar exhibited upward movement.
On June 14, 2024, the University of Michigan issued its Consumer Sentiment report for June, revealing a decline from 69.1 in May to 65.6. This figure fell short of the analyst consensus of 72, indicating a notable drop in consumer confidence. Despite this decrease, current Consumer Sentiment levels remain approximately 31% higher than those observed in June 2022.
The index for Current Economic Conditions decreased from 69.6 in May to 62.5 in June, reflecting a more pessimistic view among consumers about the present state of the economy. Similarly, the Index of Consumer Expectations declined from 68.8 to 67.6, suggesting subdued optimism regarding future economic prospects.
Year-ahead inflation expectations held steady at 3.3%, while longer-term inflation expectations edged up from 3.0% in May to 3.1% in June. The University of Michigan noted that perceptions of personal finances had worsened due to growing concerns over high prices and weakening incomes, although overall consumer sentiment about economic conditions remained largely unchanged from May.
USDCAD is moving in Ascending channel and market has rebounded from the higher low area of the channel
Following the release of the weaker-than-anticipated report, the U.S. Dollar Index consolidated near its session highs, striving to surpass the 105.80 level. Concurrently, Treasury yields declined, yet forex traders maintained a bullish stance on the U.S. dollar amid market reactions.
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