Univ. of Michigan sentiment index for July
- Sentiment 93.4 vs 91.3
- Current conditions 113.4 vs 113.2 prior
- Expectations 80.5 vs 80.2 prior
- 1 year inflation expectations 2.6% vs 2.7% prior
- 5 year inflation expectations 2.6% vs 2.6% prior
A soft piece of economic data but the Q2 GDP was ok at 2.6%. Higher confidence is better than lower confidence as well. The index is off the highs but still near the highs.
A negative, however, is the expectations index is down to 80.5. That is the lowest since October 2016 when it dipped to 76.8 (before the November election). Is some of the Trump enthusiasm declining even though stocks are still near highs? Seems that way. That is not a good trend and could ultimately lead to a softer sentiment index going forward.
The USDJPY is dipping back toward the low. The EURUSD is trading above the 1.1735 level again.
