US: University of Michigan consumer sentiment falls to 63.8 in October but improves expectations

The index of University of Michigan consumer sentiment has fallen 4.3 points in October, falling to 63.8 compared to 68.1 points in September. Despite the fall, the indicator improves the consensus forecasts, which expected a decline to 63.0.

This is the worst result recorded in the last five months, specifically since May. Furthermore, this is the third consecutive decline for the indicator.

The component of University of Michigan’s 5-year consumer inflation expectation has risen to 3% from the previous 2.8%, meeting expectations.

USD reaction

He Dollar Index (DXY) reached a daily high at 106.80 after European midday, but after the US data it has fallen to two-day lows at 106.32. At the time of writing, the greenback is trading above 106.51, losing 0.10% daily.

Source: Fx Street

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