Michigan Consumer Sentiment revised higher

The University of Michigan's consumer sentiment for the US was revised higher to 64.9 in January from a preliminary of 64.6 and above 59.7 in December, final estimates showed.

The gauge for expectations was revised higher to 62.7 from 62 while the current conditions subindex was revised lower to 68.4 from 68.6. Meanwhile, inflation expectations for the year were revised lower to 3.9% from 4% in the preliminary estimate and the 5-year outlook was revised lower to 2.9% from 3%, which should be welcomed by the FED.

Simultaneously data from the housing market was released.

Pending home sales in the US unexpectedly rose 2.5% month-over-month in December, the first rise since May, and beating market forecasts of a 0.9% drop. Sales rose in the South (6.1%) and the West (6.4%) but fell in the Northeast (-6.5%) and Midwest (-0.3%). Year-on-year, pending home sales plunged 33.8%. “This recent low point in home sales activity is likely over. Mortgage rates are the dominant factor driving home sales, and recent declines in rates are clearly helping to stabilize the market. The new normal for mortgage rates will likely be in the 5.5% to 6.5% range”, said NAR Chief Economist Lawrence Yun.

EURUSD saw a relatively small reaction to today’s data releases. The most popular currency pair trade slighlty below 1.0870 level. Source: xStation5