DXY DOLLARImpact of Prelim UoM Consumer Sentiment and Inflation Expectations on DXY Directional Bias tomorrow
The Department Responsible: The University of Michigan’s Survey Research Center releases both the Prelim UoM Consumer Sentiment and Inflation Expectations data.
Key Data Points (March 13, 2025)
Metric Forecast Previous
Prelim UoM Consumer Sentiment
63.1 64.7
Prelim UoM Inflation Expectations
4.3% 4.3%
Impact on DXY Directional Bias
Consumer Sentiment Below Forecast
DXY: Bearish. Lower consumer sentiment suggests weaker economic growth, potentially reducing demand for the USD.
Technical Impact: DXY could drop toward 102 level or more if support fails to hold
Fundamental Driver: Reduced consumer spending can slow economic growth, leading to a weaker USD.
Inflation Expectations Remain High
DXY: Mixed. High inflation expectations might signal future price pressures, potentially supporting a hawkish Fed stance. However, if inflation fears are already priced in, the impact might be muted.
Technical Impact: DXY may consolidate or buy based on the current demand floor
.