- The University of Michigan Consumer Confidence Index was down in March’s preliminary estimate.
- The Dollar Index is in negative territory but remains above 104.00.
US consumer sentiment weakened in early March, with the Index of University of Michigan (UoM) Consumer Confidence falling to 63.4 since February 67. The result was worse than expected by the markets, which expected 67 points. This is the weakest result in three months.
“The inflation expectations one year ahead fell from 4.1% in February to 3.8%the lowest reading since April 2021, but remain well above the 2.3-3.0% range seen in the two years prior to the pandemic,” according to the publication. “Long-term inflation expectations eased back to 2.8 %, falling below the narrow range of 2.9-3.1% for the second time in the last 20 months.”
Joanne Hsu, Director of Consumer Surveys, notes: “With continued turbulence in the financial sector and uncertainty about the Fed’s possible policy response, inflation expectations are likely to be volatile in the coming months.”
The Dollar Index fell back with the initial reaction and loses 0.35% on the day, settling at 104.10 points.
Source: Fx Street
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