• UoM Consumer Confidence Index rose modestly in early December.
• US Dollar Index holds steady slightly below 105.00.

Consumer sentiment improved in the US in early December with the University of Michigan's (UoM) Consumer Confidence Index rising to 59.1 from 56.8 in November. This reading came in better than the market expectation of 53.3.

"Year-ahead inflation expectations improved considerably but remained relatively high, falling from 4.9% to 4.6% in December, the lowest reading in 15 months but still well above 2 years ago," the UoM further noted in its publication. "At 3.0%, long run inflation expectations has stayed within the narrow (albeit elevated) 2.9-3.1% range for 16 of the last 17 months."

Market reaction

The US Dollar Index showed no immediate reaction to this report and was last seen staying flat on the day slightly below 105.00.