Search ForexCrunch

Some good news from the US: consumers are more confident in October: the headline figure from UoM jumped to 101.1 points, much better than expected. The Conditions figure is at 111.3 an Expectations stand at 91.3 points, both beats as well.

However, inflation expectations are lower: only 2.3% for the next year, below 2.7% last time. And for five years out, it is only 2.4% against 2.5% in September. In a separate report, business inventories are up 0.7%, as expected and with a minor upwards revision.

The US dollar is ticking a bit higher, but the moves are not impressive.

The University of Michigan was expected to report no real change in consumer confidence: 95 points in the preliminary read for October after 95.1 in September. The Conditions component carried expectations for 111.3 after 111.7 and the Expectations number for 84.7 after 84.4 points.

The US dollar was on the back foot, after the big disappointment in the inflation report. All the numbers missed expectations, with core inflation remaining stuck at 1.7%.

Charles Evans and Robert Kaplan of the Fed will be speaking later on. Both are expected to remain dovish. Over the weekend, Fed Chair Janet Yellen will make a speech.