The dollar index (DXY00) on Friday recovered from a 5-week low and rose by +0.18%. Hawkish Fed comments Friday from Richmond Fed President Barkin and Fed Governor Waller pushed bond yields higher and sparked short covering in the dollar. Also, the stronger-than-expected University of Michigan U.S. Jun consumer sentiment index supported the dollar.
The University of Michigan U.S. Jun consumer sentiment index rose +4.7 to a 4-month high of 63.9, stronger than expectations of 60.0. The University of Michigan's Jun 1-year inflation expectations indicator fell to 3.3% from 4.2% in May, better than expectations of 4.1% and the lowest in 2 years. Also, the 5-10 year inflation expectations indicator fell to 3.0% from 3.1% in May, right on expectations.
