U.S. consumer sentiment rises further in January

U.S. consumer sentiment rises further in January 2018. The Conference Board’s consumer confidence index rose to 125.4 in January, from an upwardly revised 123.1 in the prior month. This adds to the evidence that consumer confidence continues to be on a strong footing. The outturn was better than consensus expectations of 123.

Delving into details, the expectations index rose to 105.5 from 100.8. The labor market differential, which gauges the net share of consumers that witnessed employment as plentiful also rebounded to 21.2. The present situation index dropped to 155.3 from 156.5, but continues at historically solid levels.

The press released showed that consumers were slightly ambivalent regarding their income prospects in the months ahead, possibly on account of some uncertainty about the impact of the tax plan. However, in all, consumers continue to be pretty confidence that the strong rate of growth witnessed at the end of 2017 will carry on in 2018.

“On the whole, today’s report suggests that household sentiment remains upbeat, and we view this as constructive for consumer spending in Q1 18”, stated Barclays in a research report.

At 18:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at -17.2351. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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