• Consumer confidence in the US improved modestly in September.
• UoM's long-run inflation outlook edged lower to 2.8% from 2.9%.

Consumer sentiment in the US improved slightly in early September with the University of Michigan's (UoM) Consumer Confidence Index edging higher to 59.5 (flash) from 58.2 in August. This print came in below the market expectation of 60.

The Current Conditions Index edged higher to 58.9 from 58.6 and the Expectations Index rose to 59.9 from 58.

The long-run inflation expectation ticked up to 3% from 2.9% while the 1-year inflation outlook fell to 5% from 5.2%.

The report further revealed that the one-year inflation expectation declined to 4.6% and the five-year inflation expectation edged lower to 2.8% from 2.9%.

Market reaction

The US Dollar Index retreated from daily tops after this report and was last seen trading at 109.95, where it was still up 0.2% on a daily basis.