US consumer credit expanded strongly - Nomura

Ross J Burland FXStreet

Analysts at Nomura noted the only US data that came from the US session on Monday.

Key Quotes:

"Consumer credit: Consumer credit expanded strongly by $28.0bn in November, the largest gain in 16 years, after rising by $20.5bn in October (up 8.8% at an annual rate).

Non-revolving credit rose by a healthy $16.8bn. Revolving credit (mostly credit card loans) also rose at a solid pace, up by $11.2bn.

This appears consistent with a strong labor market with low unemployment and elevated consumer confidence, which we expect will continue in the near term."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD climbs above 0.6950 on RBA Kent's hawkish remarks, ahead of Chinese data

AUD/USD attracts follow-through buyers for the second straight day on Monday, extending last week's recovery from sub-0.6900 levels to an over three-month high amid supporting factors. RBA Assistant Governor Chris Kent's hawkish remarks boost the Australian Dollar ahead of China's macro data dump. Meanwhile, the recent fall in US bond yields keeps the US Dollar near a two-week low, touched last Friday, further boosting the pair.

USD/JPY struggles below 158.00 on hawkish BoJ, weak USD

USD/JPY meets fresh supply during the Asian session on Monday, trading above last week's swing low as the US Dollar remains depressed near a two-week low amid the recent decline in US bond yields. Furthermore, looming intervention risks underpin the Japanese Yen and weigh on the currency pair amid BoJ Governor Kazuo Ueda's hawkish remarks. Meanwhile, Fed rate-hike bets and geopolitical uncertainties could limit USD losses and support spot prices.

Gold eyes $4,200 as sliding bond yields keep USD depressed

Gold kicks off the new week on a positive note, awaiting a sustained move above $4,200 before the next leg up as the recent decline in US bond yields keeps the US Dollar depressed. However, Fed hike bets and geopolitical risks help the buck hold above a two-week low, touched on Friday, which might keep a lid on further upside for the non-yielding bullion.

Week ahead: Stocks seek direction as earnings take centre stage

It has been a challenging week for investors as the hotter US CPI report and the solid start to the earnings season did not produce the expected market movements. With the exception of the aussie, the US dollar is currently posting minimal gains across the FX spectrum, with its post-CPI rally proving short-lived, especially as dovish Fedspeak persists.

CFTC report: Euro and Aussie shorts build as Gold exposure remains elevated

The week in one sentence: Euro shorts deepened, and Yen longs retreated in the week to October 13. In addition, Coffee buying continued, and Gold exposure remained elevated despite another price decline. Speculators turned more bearish on the Euro (EUR), taking net shorts to around 137.6K contracts, the highest level since January 2016.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.