The University of Michigan commented: “Sentiment this month was characterized by divergent movements across index components and across demographic g
The University of Michigan commented: “Sentiment this month was characterized by divergent movements across index components and across demographic groups with little net change from last month […] few consumers mentioned the potential federal government shutdown, but if the shutdown comes to bear, consumer views on the economy will likely slide […]”
The Consumer Sentiment report is one of the few economic reports ahead of the Fed Interest Rate Decision, which will be released on September 20. FedWatch Tool indicates that there is a 97% probability that Fed will leave the federal funds rate unchanged at the upcoming meeting.
U.S. Dollar Index pulled back towards 105.10 after the release of the weaker-than-expected report. Consumer activity is extremely important for the U.S. economy. In case consumer activity slows down, the Fed may be less hawkish.
Gold tested session highs near the $1930 level as traders focused on weaker dollar.
SP500 settled near session lows at 4480. Traders are worried that Fed’s rate hikes put too much pressure on the economy.
For a look at all of today’s economic events, check out our economic calendar.
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