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Michigan Consumer Sentiment Pulled Back To 77.9 In April

FXEmpire.com -

On April 12, 2024, the University of Michigan released the preliminary reading of Michigan Consumer Sentiment report. The report indicated that Michigan Consumer Sentiment declined from 79.4 in March to 77.9 in April, compared to analyst consensus of 79.

Current Economic Conditions decreased from 82.5 in March to 79.3 in April, while the Index of Consumer Expectations declined from 77.4 to 77.0.

Year-ahead inflation expectations increased from 2.9% to 3.1%. Long-run inflation expectations have also increased from 2.8% to 3.0%. Rising consumer inflation expectations show that Fed must do more to fight inflation.

According to the report, the uptick in inflation expectations reflects frustration that the inflation slowdown may have stalled.

The University of Michigan commented: “Since January, sentiment has remained remarkably steady within a very narrow 2.5 index point range, well under the 5 points necessary for a statistically significant difference in readings”.

U.S. Dollar Index tested new highs after the release of consumer sentiment data. Currently, U.S. Dollar Index is trying to settle above the 106 level. Traders bet that Fed will be forced to keep rates at current levels and may even raise rates if inflation gets out of control.

Gold rallied towards the $2415 level. Traders ignore strong dollar and buy gold amid rising geopolitical tensions.

SP500 pulled back towards the 5160 level amid worries about hawkish Fed. Rising consumer inflation expectations may put additional pressure on stocks.

For a look at all of today’s economic events, check out our economic calendar.

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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