US consumer confidence came in much better than expected in the US session. The index moved to 102.00 versus estimates of 95.9
details:
- The current situation index is 143.1 compared to 142.9 previously
- Expectations Index 74.6 compared to the previous 66.4
- Hard-to-find jobs 13.5 vs. 15.5 previously
- 16.9% of consumers expect their income to increase compared to 16.8% last month
- 12-month inflation expectations 5.4% vs. 5.3%
Although it was a significant upward move, it only corrected part of the decline seen over the past three months which saw the index fall from 115 to 97.5 last month.
Consumer confidence rebounds
In other economic news, the Case-Shiller Home Price Index for March came in as expected at 0.3%.
The US Treasury auctioned a record amount of two-year and five-year notes today. Both had less than excellent demand, and each would have a positive tail (1.0 basis points and 1.3 basis points, respectively). Coverage calls were also light compared to 6-month averages indicating lower demand.
This has helped yields rise today with the two-year yield approaching 5%. It is currently trading at 4.980%, up 2.8 basis points on the day.
A snapshot of the yield curve shows:
- One year 2 years 4.980%, +2.8 basis points
- 5-year yield 4.593%, +6.3 basis points
- 10-year yield 4.551%, +7.9 basis points
- The 30-year yield is 4.665%, +8.9 basis points.
Tomorrow, the US Treasury will end coupon auctions with the sale of 7-year bonds.
The rise in interest rates has helped reverse previous declines in the US dollar.
From strongest to weakest among major currencies
- EURUSD rose in the Asian and early European session, reaching a high of 1.0888, before reversing lower towards its 200-hour moving average at 1.0852. The lowest price in the American session reached 1.0854.
- GBPUSD found willing sellers at the high of 1.27997 – just below 1.2800. This was followed by the price falling to a low of 1.2753 in the last few hours of trading. On the new trading day, the 100 hourly MA at 1.27379 will be a key target followed by the 200 hourly moving average at 1.27183 (and moving higher).
- USDJPY closes today at its highest levels of the day after surpassing Monday/Tuesday's level of 156.985. The high from last week at 157.19 is the next major target. A move above that opens the door to a potential move towards 158.00 (high praise from May 1st).
Other major currency pairs saw the US dollar rise from lower levels, and although the US dollar finished lower against the Swiss franc, it returned above its 200 hour moving average at 0.9116. The lowest price for the day fell at 0.9085.
In the US stock market, the Nasdaq closed at another record high. The index is now up 13.38% compared to last year when the index rose 43.42%.
Today, the Nasdaq rose 99.09 points, or 0.59%, to close above 17,000 points for the first time at 17,019.88. Nvidia led the gains, rising $74.32, or 6.98%.
The S&P could only manage a small gain of 1.32 points, or 0.02%, at 5,306.03. It is still below its all-time closing high reached last week at 5,321.42.
The Dow Jones Industrial Average fell -216.73 points, or -0.55%, to 38,852.87. The index is now down 1,151 points from the highest closing level of 40,003.60