JPY flows: JPY strong on the back of UMich data

The University of Michigan survey numbers have knocked the equity market lower, with the rise in 1 year inflation expectations to 4.3%, the highest since December 2023, particularly notable. Confidence numbers are also lower, albeit less dramatically. It may well be that the numbers were affected by the tariff threats, in which case they are likely to be reversed next month, so probably shouldn’t be taken too seriously. but the combination of lower confidence and higher inflation is certainly risk negative, and has supported the JPY, particularly on the crosses. S the market realises that the data is probably tariff affected the impact may fade, but JPY strength remains hard to oppose.