• UOM Consumer Confidence Index edged slightly higher in early July.
• US Dollar Index is pushing lower toward 108.00.

Consumer sentiment in the US improved slightly in early July with the University of Michigan's Consumer Confidence Index edging higher to 51.5 in July's flash estimate from 50 in June. This print came in slightly better than the market expectation of 49.9.

On a negative note, the Index of Consumer Expectations declined to its lowest level since May 1980 at 47.3.

"The median expected year-ahead inflation rate was 5.2%, little changed from the past five months," the publication further revealed. "Median long-run expectations fell to 2.8%, just below the 2.9-3.1% range seen in the preceding 11 months."

Market reaction

Pressured by falling long-term inflation expectations, the US Dollar Index edged lower and was last seen losing 0.5% on the day at 108.12.