U. of Mich Confidence Index Beats at 94.6; USD/CAD Buoyant
- USD U. of Michigan Confidence (JUN) comes in at 94.6 vs 91.4 estimated.
- Current economic condition and expectations both improve.
- USDCAD sees a slight reaction trading at C$1.2326 at the time of writing
The June US U. of Michigan Confidence Index, a monthly telephone survey relaying consumer sentiment, came in at 94.6 vs. the 91.4 estimated, according to a Bloomberg News survey. This represents a +3.9 increase from the 90.7 level that was reported in May. The U. of Michigan index has become a valuable tool for investors because it produces an assessment on consumer spending.
The index provides a general idea into the health of the economy. A rising U of Michigan Confidence Index indicates a rise in income or wages followed by an upturn in consumer spending. Conversely, a low, or falling consumer confidence represents a decline in consumer spending which predicates a downturn in the economy. Overall, the release of today’s report has been met with positivity by the US Dollar.
Here's a summary of the sentiment report:
- USD U. of Michigan Confidence (JUN P): 94.6 versus 91.2 expected, from 90.7.
- USD U. of Mich. Current Conditions (JUN P): 106.8 from 100.8.
- USD U. of Mich. Expectations (JUN P): 86.8 from 84.2.
USDCAD 1-minute Chart: Friday, June 12, 2015
After a positive May US Nonfarm Payrolls report in the previous week, most economists believed the U. of Michigan confidence would increase. USDCAD saw a slight positive reaction to the news with the pair trading at C$1.2326 at the time of writing.
--- Written by Yash Gandhi, DailyFX Research, and Christopher Vecchio, Currency Strategist
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.