US: Consumer Sentiment falls to 68.8 in early January versus 70.0 expected, according to UoM

The preliminary UoM Consumer Sentiment Index fell more than expected to 68.8 in January.
There was no meaningful FX market reaction to the latest report.

Joel Frank Independent Analyst

According to the University of Michigan's (UoM) preliminary January US Consumer Sentiment survey, the Consumer Sentiment Index fell to 68.8 in January from 70.6 in December, below expectations for a 70.0 reading. Meanwhile, UoM's Current Conditions Index fell to 73.2 from 74.2 in December, a tad below expectations for a drop to 73.3. The Consumer Expectations Index fell to 65.9 from 68.3 last month, also below expectations for 66.5. Finally, one-year inflation expectations according to the survey rose to 4.9%, this highest since 2008, and five-year inflation expectations rose to 3.1%, the highest since the early 90s.

Market Reaction

There was no meaningful FX market reaction to the latest UoM survey data.

Author

Joel Frank

Independent Analyst

Joel Frank is an economics graduate from the University of Birmingham and has worked as a full-time financial market analyst since 2018, specialising in the coverage of how developments in the global economy impact financial asset

EUR/USD ticks higher to near 1.1800 ahead of German inflation data

EUR/USD trades marginally higher to near 1.1800 in the European session on Friday, helped by renewed US Dollar weakness. Attention now turns toward the release of the preliminary inflation data for February from Germany and its major states during the day.

GBP/USD struggles near 1.3500 amid UK political drama, BoE easing bias

GBP/USD struggles to build on the overnight modest bounce from the weekly low and oscillates in a narrow band near 1.3500 in European trading on Friday. The Gorton and Denton by-election, held on February 26, has become a focal point of political drama in the UK, along with the Bank of England (BoE) easing expectations, acts as a headwind for the British Pound and the GBP/USD pair.

Gold sticks to positive bias as safe-haven demand persists; $5,200 holds the key for bulls

Gold trades with positive bias for the third straight day on Friday, with bulls still awaiting sustained strength and acceptance above the $5,200 mark before positioning for any further gains. Geopolitical risks remain in play amid a large US naval and air power buildup in the Middle East.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.