A Bounce in Risk…

…Due to the Big beat in Michigan confidence Survey by 4 standard deviations,touching highest level in 15 years. The 1 and 5 year inflation expectations jumped as well,showing one of the biggest M/M gain in Months. A solid ,soft data report for Dollar and Spoos. A few Positive comments within the Survey report

“Consumers viewed prospects for the overall economy much more favorably, with the economic outlook for the near and longer term reaching their highest levels since 2004. The gains were recorded as trade negotiations with China collapsed and China responded with their own tariffs.”

Tariff comments from Survey

” To be sure, negative references to tariffs rose in the past week and are likely to rise further in late May and June. Those who held negative views
about the impact of tariffs on the economy and pricing had values on the Expectations Index that were 25 points lower, and
expected the year-ahead inflation rate to be 0.6 percentage points higher. Even apart from the direct impact of tariffs on prices,
rising tariffs could cause a more general loss of confidence which could further diminish the pace of consumer spending. At present, the data point toward moderate spending growth in the year ahead. Nonetheless, the data indicate the corrosive impact of escalating trade war.”

Watching The unchanged level in Spoos, lets see if a break above can create some upside momentum. Watching 98.10 in DXY

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.