USD flows: Michigan sentiment may moderate USD weakness

A modest improvement in the current conditions index of the University of Michigan survey is mildly USD positive, as we had seen five consecutive monthly declines in the previous five months. The expectations index and the total index were also better, and this might marginally reduce market concerns about a weakening economy, and potentially reduce he risks of a 50bp easing from the Fed as well. There hasn’t been much market reaction, but the USD weakness seen in the last 24 hours may now fade into the weekend.