03:00 PM GMT, United States - University of Michigan inflation report for January:
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Michigan Current Conditions: actual 77.9; previous 75.1;
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Michigan Consumer Sentiment: actual 73.2; forecast 74.0; previous 74.0;
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Michigan Consumer Expectations: actual 70.2; previous 73.3;
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Michigan 5-Year Inflation Expectations: actual 3.3%; previous 3.0%;
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Michigan 1-Year Inflation Expectations: actual 3.3%; previous 2.8%;
The January data shows a concerning divergence: while current economic conditions improved slightly (77.9 from 75.1), expectations deteriorated (70.2 from 73.3). The sharp rise in both 1-year and 5-year inflation expectations to 3.3% signals growing consumer anxiety about future price pressures, especially notable among lower-income groups. This significant shift in inflation psychology, paired with stable but subdued overall sentiment (73.2), suggests consumers are becoming more worried about long-term economic prospects despite feeling some immediate relief from cost pressures.

There was little impact on EURUSD, which started to hover around 1.025.
US100 continued the decline after data publication.
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