Consumer Credit Accelerates Slightly in March

Wells Fargo Research Team Wells Fargo

Total consumer credit increased $16.4 billion in March. Revolving credit growth was tepid in Q1, consistent with the slow pace of consumer spending growth and the rise in the personal saving rate during this period.

Revolving Credit Growth Slows

Consumer credit rose a trend-like $16.4 billion in March. After peaking at a 6.8 percent year-over-year growth in November, revolving credit has decelerated in the subsequent months.
Real personal consumption in Q1 grew at the slowest annual rate since 2009. Coupled with a 0.7 percentage point increase in the personal saving rate between December and March, the slowdown is not altogether surprising.

Nonrevolving Credit Resilient

Through Q1, nonrevolving credit growth remained fairly steady, despite the slowdown in auto sales seen through the first few months of the year.
A breakdown of nonrevolving credit growth into its subcomponents is not yet available for Q1, but it is possible that a jump in student loan borrowing during the quarter helped offset the autos slowdown.

Download the full report

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.