The UMich consumer sentiment reports is like quantum physics: Something that exists in two states a once. It both matters and doesn’t matter. It’s a deeply flawed indicator but it also captures something, or at least the momentum of something.
This edition is too early to capture the full effects of ‘Liberation Day’ but it will show which way the wind is blowing. Keep an eye on inflation expectations numbers, which were at 4.9% and 3.9%, respectively in the final March data.
This article was written by Adam Button at www.forexlive.com.
