Summary:
- US stocks extend recent rally above 2600
- US consumer confidence hits highest level since 2000
- Powell tesitfies before Senate
- SEK comes back under pressure after retail sales miss
- How high could Bitcoin go?
US stock markets have added to their recent gains today with the US500 gaining traction above the 2600 level. Their was a fairly bright start seen in Europe with the DE30 also showing modest gains in early trade and this has set the tone for a steady move higher in global indices today.
On a fairly quiet day of economic releases the US consumer confidence is arguably the biggest of them all. The latest reading on consumer confidence supports the strong rise seen in the University of Michigan consumer sentiment index that has been apparent for the best part of a decade now.
The US dollar was on the rise following the release but it has since been knocked back since Fed nominee Powell began his highly anticipated testimony before a Senate select committee. There wasn’t anything truly surprising in the expected next Fed chair’s comments, but they arguably did come in a little on the dovish side which saw Gold move back near its 6-week high.
The Scandinavian currencies have had tough times of late as both SEK and NOK have been sold off due to mounting concerns related to the housing markets. Today’s data from the Swedish economy doesn’t seem to reassure investors as retail sales missed the consensus while trade balance saw a deficit.
Cryptocurrency traders have had a hectic period of time of late as major digital currencies have seen astounding increases and many of them have been able to establish their new all-time peaks. However, along with the rising price of Bitcoin (it’s trading above $9,800 at the time of writing) there are more and more uncertainties and assumptions with regard to where to price could go further.