US: UoM Consumer Confidence Index improves to 59.1 in December vs. 53.3 expected

UoM Consumer Confidence Index rose modestly in early December.
US Dollar Index holds steady slightly below 105.00.

Eren Sengezer FXStreet

Consumer sentiment improved in the US in early December with the University of Michigan's (UoM) Consumer Confidence Index rising to 59.1 from 56.8 in November. This reading came in better than the market expectation of 53.3.

"Year-ahead inflation expectations improved considerably but remained relatively high, falling from 4.9% to 4.6% in December, the lowest reading in 15 months but still well above 2 years ago," the UoM further noted in its publication. "At 3.0%, long run inflation expectations has stayed within the narrow (albeit elevated) 2.9-3.1% range for 16 of the last 17 months."

Market reaction

The US Dollar Index showed no immediate reaction to this report and was last seen staying flat on the day slightly below 105.00.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD looks mildly offered below 1.1750

EUR/USD comes under some mild selling pressure on Friday, partially fading Thursday’s strong pullback and revisiting the 1.1740 region on the back of a humble recovery in the US Dollar. Later in the day, investors’ attention will be on the release of US flash PMIs for the month of January.

GBP/USD flirts with two-week tops around 1.3530

GBP/USD extends its weekly firm performance and challenges the area of two-week peaks around 1.3530 on the back of a tepid bounce in the Greenback. Positive results from UK Retail Sales and preliminary PMIs appear to reinforce Cable's solid gains so far on Friday.

Gold shifts its focus to $5,000

Gold prices hit a record high near $4,970 per troy ounce earlier on Friday, leaving the door wide open to a potential test of the key $5,000 barrier. The Greenback’s inconclusive price action and shrinking US Treasury yields across the curve add to the yellow metal’s rally so far on Friday.

Bitcoin, Ethereum, and XRP face elevated downside risk amid weak technical setups

Bitcoin is struggling to stay above support at $89,000 at the time of writing, as headwinds intensify across the cryptocurrency market on Friday. Ethereum and Ripple are facing low retail and institutional demand, while bearish indicators continue to flash subtle signals that losses may extend further.

A tough road ahead for the Bank of Japan

The BoJ paused rates at 0.75%, expressing greater confidence in growth and reaching the 2% inflation goal. The challenge is balancing rate hikes to support JPY without slowing growth.

Tron Price Analysis: TRX extends gains as bullish breakout structure remains intact

Tron (TRX) price extends its gains, trading above $0.30 at the time of writing on Friday after retesting the previously broken bullish breakout structure earlier this week. The positive on-chain and derivatives data back the bullish price action.