TD Securities' analysts note that the data released on Friday revealed that the U.S. consumer sentiment improved marginally in July, rising to 98.4 from 98.2 before.

• “The gain was entirely the result of an improvement in the expectations component, which more than offset a modest decline in the current conditions component. More important to the Fed, inflation expectations for the 5-10y horizon jumped to the top end of the recent range (since mid-2016) at 2.6% while 1y expectations ticked down a tenth to 2.6% in July.
• This is a one-month development so we wouldn't read too much into it (we will also get the final read in a couple of weeks) but this would surely bring some relief to some Fed officials for now.”