U.S. consumer sentiment jumps more than expected in May

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Investing.com -U.S. consumer sentiment jumped more than expected in May, bolstering optimism over the state of the world's largest economy, according to a report published on Friday.

The preliminary publication of the data for May from the University of Michigan's Consumer Survey Center showed that consumer sentiment rose to 95.8, from April's reading of 89.0.

That was its highest reading since June 2015.

Analysts had forecast an increase in the reading to only 90.0.

The current conditions indicator surprised with a rise to 108.6 in May, compared to expectations of 106.5 and the previous month's reading of 106.7.

Meanwhile consumer expectations also moved higher to 87.5 in May, compared to the estimate of 78.1 and the previous month's reading of 77.6.

Inflation expectations for the next 12 months dropped to 2.5% from the prior 2.8%, while the five-year gauge increased to 2.60%, from the prior 2.50%.

After the report, which was released simultaneously with business inventories, EUR/USD was trading at 1.1290 from around 1.1308 ahead of the release of the data, GBP/USD was at 1.4348 from 1.4365 earlier, while USD/JPY was at 109.41 from 109.19 prior to the publication.

The US dollar index, which tracks the greenback against a basket of six major rivals, was at 94.84, compared to 94.64 ahead of the report.

Meanwhile, U.S. stocks traded mixed. The Dow Jones slipped 12 points, or 0.07%, while the S&P 500 traded flat, and the tech-heavy NASDAQ Composite gained 17 points, or 0.38%.

Elsewhere, in the commodities market, gold futures traded at $1,266.75 a troy ounce, compared to $1,268.00 ahead of the data, while crude oil traded at $46.11 a barrel from $46.16 earlier.

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