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The University of Michigan’s preliminary Consumer Sentiment Index statistics for January will likely show a small decline. The timing, just after retail sales data, may result in a higher impact than usual for these forward-looking figures. Expectations look rich and, therefore, the dollar could receive a second blow, FXStreet’s Analyst Yohay Elam briefs. 

Key quotes

“The economic calendar is pointing to a small retreat to 80 points, but economists missed the mark in the past two publications and may be overestimating the figure once again.”

“Consumer sentiment is released only 90 minutes after Retail Sales figures for December are due out. Without government support and with a raging virus, expenditure dropped in November and has likely continued declining in December. Therefore, Friday’s dual publications could deal two blows to the dollar, with consumer confidence having the final word.”

“In case UoM’s data meet estimates or surprise with a bounce, the dollar could find some buying in the last hours of the week. However, chances are low.”