- Consumer confidence in US continued to strengthen in January.
- US Dollar Index struggles to shake off bearish pressure despite upbeat data.
The University of Michigan’s Survey of Consumers revealed that the Index of Consumer Sentiment in January improved to 99.8 from 99.3 in December. This reading came in better than the previous estimate and the market expectation of 99.1.
Commenting on the data, “the resilience of consumers is remarkable and due to record low unemployment, record gains in income and wealth, as well as near record lows in inflation and interest rates,” said Surveys of Consumers chief economist, Richard Curtin.
USD stays weak
Despite the upbeat data, the greenback is having a tough time recovering its losses against its major rivals. As of writing, the US Dollar Index was down 0.25% on the day at 97.62. Sharply falling US Treasury bond yields and month-end flows seem to be weighing on the USD.