Today we see the release of sentiment data from the U.S., detailing how the average American consumer feels about their financial situation over the coming year. According to various economic indicators the U.S. economy is making a revival, but it remains to be seen whether this is a consensus felt on Main Street rather than just Wall Street.
Trading Event: University of Michigan Sentiment Index 1355 GMT
- The forecast for today’s report is 83.2, up from a reading of 81.9 in April.
- A confidence indicator; the S&P 500 equity index rose by 1.4% in May, reaching a new high.
- Although we have seen strong growth in employment, wage inflation has been flat, resulting in slow income growth for the average household.
- Yet, the Conference Board’s Confidence Index rose to its highest level since 2008.
- Banc De Binary analysts predict that there will be a moderate rise in consumer confidence, indicating a potential upward movement in the USD/JPY.