Current Conditions 116.4vs 111.3 exp, prior 111.7
Michigan 1 year Inflation expectations 2.3%vs 2.7% prior
Michigan 5 year Inflation expectations 2.4% vs 2.5 prior
Solid beat on the headline numbers , a miss on Inflation expectations. The USD is not reacting much, remains on the back foot this afternoon. We are wondering whether the 2.28% is going to really give way on the 10 Yr Tsy yields following the lower CPI release earlier. Such a move would probably trigger more pronounced breaks of EURUSD 1.1880, USDJPY 111.70, USDCHF 0.9710 and CABLE 1.3335.
If not, we prepare for a longer period of range trading on the majors in my opinion.