US: UoM Consumer Confidence Index improves modestly to 63.5 in April vs. 62 expected

• Consumer Confidence Index in the US rose slightly in April.
• US Dollar Index clings to daily recovery gains above 101.00.

Consumer sentiment in the US improved modestly in early April with the University of Michigan's (UoM) Consumer Confidence Index rising to 63.5 (preliminary) from 62 in February. This reading came in better than the market expectation of 62.

"Year-ahead inflation expectations rose from 3.6% in March to 4.6% in April," the UoM further noted. "Uncertainty over short-run inflation expectations continues to be notably elevated, indicating that the recent volatility in expected year-ahead inflation is likely to continue. The bumpiness in inflation expectations is limited to the short run as long-run inflation expectations remained remarkably stable."

Market reaction

The US Dollar Index edged higher with the immediate reaction to this report and was last seen rising 0.3% on the day at 101.30.