US consumer sentiment dropped in July to 81.3 points. The University of Michigan’s Consumer Sentiment was expected to stand at 83.5 points. The CB Leading Index is expected to rise by 0.6% but the actual result is only +0.3%.
Towards the publication, EUR/USD was struggling to recover 1.35, GBP/USD traded around 1.7055 and USD/JPY around 101.40. The publication has little effect, as other forces are in play in the markets Update: the dollar is marginally lower now.
Inside the consumer sentiment report, current conditions rose to 97 from 96.6 points, expectations dropped from 73.5 to 71 points and one year inflation expectations are at 3.3%
While there isn’t always a strong correlation between the consumer sentiment and retail sales, the publication of the initial estimate usually moves markets.
A lot is going on in the markets: geo-political tensions in Ukraine and in Gaza are weighing on markets. EUR/USD dipped below 1.35 on these issues and others.
These figures help the pair recover above 1.35, to 1.3515 at the time of writing.
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