Summary:
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USD a little lower despite consumer confidence hitting 18-year peak
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Stock indices also mixed after US500 holds key support
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SEK erases gains after PM Lofven’s ouster
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Top 3 charts this week: Oil, US30 and USDPLN
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Trading tips for the FOMC meeting
The most recent data on US consumer spending suggests this economic indicator is in rude health with a standout print, but it has seen a fairly muted reaction in the markets with the buck remaining a little lower on the day. The Conference Board consumer confidence index rose to its highest level since September 2000 in coming in at 138.4, well above the 132.2 expected and the prior reading was also revised higher for good measure (now 134.7 vs 133.4 previously).
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Create account Try a demo Download mobile app Download mobile appThe week began with a sizable gap lower for US indices but they recovered throughout Monday’s session with the US100 leading the way back. So far today the trade has been fairly mixed but the US500 remains above what may now be deemed as important support at 2918. The 2918 level provided some good resistance on several attempts to rally earlier this month but a decisive move above it on Thursday saw a prompt 28 point rally to a new all time high of 2946.7. The move back lower yesterday found some support around the prior resistance of 2918 and longs were able to defend this level and send the market back up higher.
The Swedish parliament voted out the incumbent Prime Minister Stefan Lofven in the voting held earlier on Tuesday but the krona remained little changed as the move was broadly anticipated and it brought nothing in terms of the political scene clarity. The parliament voted 204 to 142 against Mr Lofven forcing him to step down. However, it will not happen immediately as he is expected to continue as caretaker Prime Minister until a new government and thereby PM is decided on.
The top 3 charts this week are Oil, US30 and USDPLN with more information on these available here.
The Fed rate decision tomorrow night is possibly going to be the biggest event of the week and we look more closely at what could happen, as well as what impact previous decisions have had on the markets, in our in-depth analysis here.
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