Confidence Little Changed Heading into the New Year

Wells Fargo Research Team Wells Fargo

Consumer confidence nudged down in December to 126.5. Positive developments since the survey suggest some near-term upside, while the high level remains supportive of consumer spending.

Some Upside to Come?

Consumer confidence fell marginally in the final month of the year, slipping to 126.5. Confidence fell short of expectations, however, given new highs reached in the stock market and slightly lower gas prices. The underwhelming print may come down to timing. The cutoff date for the survey was Dec. 13, when a Phase I trade deal was more up in the air and tariffs on a swath of more consumer goods still loomed.

Confidence Still Elevated and Supportive of Spending

Expectations led the decline, with the net share of households expecting income to rise slipping. Strong hiring, however, helped households become more upbeat on present conditions.
Spending momentum has eased up through the first two months of the fourth quarter, but with confidence still high, we expect consumer spending to remain a key driver of growth in the fourth quarter and into the new year.

Download The Full Economic Indicators

Author

Wells Fargo Research Team

Wells Fargo

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.