USD steady as UMich sentiment beats expectations at 60.7

The US Dollar Index remained stable following the release of final University of Michigan consumer sentiment data for June, which came in at 60.7, slightly above the expected 60.5. The reading marks a significant recovery from April's low of 52.2, though it remains well below late 2024 levels. Current conditions improved to 64.8 from the preliminary 63.7, while expectations declined marginally to 58.1 from 58.4. Notably, one-year inflation expectations eased to 5.0% from 5.1%, with five-year expectations also declining to 4.0% from 4.1%. The minimal market reaction suggests traders had already priced in the modest improvement. Major USD pairs including EUR/USD, GBP/USD, and USD/JPY showed little movement post-release. The data reinforces the view that while consumer confidence is recovering, persistent inflation concerns continue to weigh on sentiment, potentially supporting the Fed's cautious approach to monetary policy adjustments.