USDJPY Rises on Upbeat Consumer Sentiment Data
Consumer Sentiment Talking Points:
- Consumer Sentiment beat expectations
- Income and wealth gains helped bolster confidence
- Retail sales get off to a sluggish start in 2020
The University of Michigan released preliminary figures for January consumer sentiment showing consumers remain upbeat about the state of the economy. USDJPY rose as the headline figure crossed the wires at 100.9, beating expectations of 99.5 and rising over last months read.
USDJPY (1-Min Chart)
Consumers are showing optimism for the future of the economy, with the expectations index rising to 92.6, near historical highs. The figure was bolstered by personal finances with net gains in household wealth rising to the best level since the 1960s.
Also released this morning was retail sales data for last month. January’s figure came across the wires at 0.3 percent, matching expectations. However, clothing retailers saw the biggest drop in nearly a decade, which could inject worry about a slowdown in discretionary spending. The print also showed that last month’s figure was not as strong as initially expected, being revised down a percentage point to 0.2 percent.
--Written by Thomas Westwater, Intern Analyst for DailyFX.com
Contact and follow Thomas on Twitter @FxWestwater
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.