Preliminary July US sentiment data from the University of Michigan
- Prior was 93.5
- Current conditions 108.7 vs 109.9 exp
- Prior current conditions were 110.8
- Future expectations 77.1 vs 83.0 exp
- Prior expectations were 82.4
Inflation
- 1 year inflation expectations 2.8% vs 2.6% prior
- 5-10 year inflation expectations 2.6% vs 2.6% prior
Lowest since April.
There is a bit of a divergence between the 'expectations' and 'current conditions'. The expectations number fell to the lowest since Sept 2014 and that might be a function of the Brexit vote and some of the worries around politics. Meanwhile, current conditions remain very close to the top end of the 5-year range.
It's a bit of negative news but it shouldn't be enough to dampen the dollar.