Consumer Credit Decelerates Further in January

Wells Fargo Research Team Wells Fargo

Consumer credit growth missed expectations in January, rising $8.8 billion. Revolving credit outright declined by $3.8 billion, the largest dip since December 2012.

Revolving Credit Falls in January

Consumer credit growth was soft to start the year. The weakness was concentrated in revolving credit as nonrevolving credit growth posted a fairly average $12.6 billion increase.
Consumer spending was a bit soft in January, which may explain part of the pullback. Higher rates, seasonal adjustment issues related to the holidays and some payback from recent strong gains may also have played a role.

Credit Card Delinquencies Remain Low

In a separate recent release from the NY Fed, household debt delinquencies looked relatively healthy. In the revolving space, credit card delinquencies remain below pre-recession levels.
Auto loan delinquencies have ticked up slightly, and student loan debt obligations remain a well-known challenge. If these credit quality trends continue, the pace of nonrevolving credit growth may slow as lending standards tighten gradually to compensate

Download the full report

Author

Wells Fargo Research Team

Wells Fargo

EUR/USD holds firm near 1.1850 amid USD weakness

EUR/USD remains strongly bid around 1.1850 in European trading on Monday. The USD/JPY slide-led broad US Dollar weakness helps the pair build on Friday's recovery ahead of the Eurozone Sentix Investor Confidence data for February.

GBP/USD hovers near 1.3600 as UK government crisis weighs on Pound Sterling

GBP/USD moves sideways after registering modest gains in the previous session, trading around 1.3610 during the European hours on Monday. The pair could come under pressure as the Pound Sterling may weaken amid a fresh government crisis in the United Kingdom.

Gold remains supported by China's buying and USD weakness as traders eye US data

Gold struggles to capitalize on its intraday move up and remains below the $5,100 mark heading into the European session amid mixed cues. Data released over the weekend showed that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Fed expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Cardano steadies as whale selling caps recovery

Cardano (ADA) steadies at $0.27 at the time of writing on Monday after slipping more than 5% in the previous week. On-chain data indicate a bearish trend, with certain whales offloading ADA. However, the technical outlook suggests bearish momentum is weakening, raising the possibility of a short-term relief rebound if buying interest picks up.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.