US: UoM Consumer Sentiment Index declines to 70.3 (final) in August from 81.2

UoM Consumer Sentiment Index in US dropped in August.
US Dollar Index stays in the negative territory around 92.70.

Eren Sengezer FXStreet

Consumer confidence in the US deteriorated sharply in August with the University of Michigan's Consumer Sentiment Index dropping to 70.3 in August (final) from 81.2 in July. This reading missed the market expectation of 70.7.

Further details of the publication revealed that the Current Economic Conditions Index declined to 78.5 from 84.5 and the Consumer Expectations Index dropped to 65.1 from 79.

Commenting on the data, "personal financial prospects continued to worsen due to smaller income gains amid higher inflationary trends," said Surveys of Consumers chief economist Richard Curtin. "Consumers' extreme reactions were due to the surging Delta variant, higher inflation, slower wage growth, and smaller declines in unemployment."

Market reaction

The greenback showed no reaction to this data as investors keep a close eye on FOMC Chairman Jerome Powell's speech at the Jackson Hole Symposium. As of writing, the US Dollar Index was down 0.4% on the day at 92.68.

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.