News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Heads Up:🇦🇺 RBA Meeting Minutes due at 01:30 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-21
  • New Zealand reports 14 new local Covid cases - BBG
  • I had a chance to talk with @tastytradeRyan and @victorJ0NES about Evergrande and its impact on US markets — always great talking with these two guys on Mondays. https://t.co/vddTknnPWC
  • RT @cheddar: Stocks dropped the most since May on Monday, sending shockwaves through Wall Street. @CVecchioFX explains the global impact of…
  • The Spinning Top candlestick pattern forms part of the vast Japanese candlestick repertoire with its own distinct features. Gain a better understanding of the spinning top candlestick here: https://t.co/DWm7cBMUg9 https://t.co/EegiwWMe9V
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/reRmDdK93P https://t.co/ZE0Hgn9PCM
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePT7Yu8 https://t.co/GFx3b1W0OD
  • RBNZ's Hawkesby talking "considered steps" when setting monetary policy, leaning towards 25bps - With money markets pricing in 31bps worth of tightening at the October meeting. Room for disappointment. https://t.co/C7DHnPIeuU https://t.co/K2835aP57Z
  • Gold has plunged nearly 5% off the Monthly high with the sell-off now probing key weekly support here at 1738/47- looking for a pivot here with the Fed interest rate decision on tap. Get your $XAUUSD market update from @MBForex here:https://t.co/Vnxi4143uT https://t.co/zTpqrFIZfk
  • RBNZ: - We have benefitted from a robust rebound in China, our main trading partner - The interruption to the economy's supply side has lasted longer than expected
S&P 500 Slips as Consumer Confidence, New Home Sales Disapoint

S&P 500 Slips as Consumer Confidence, New Home Sales Disapoint

Thomas Westwater, Analyst

Consumer Confidence Talking Points

  • Consumer confidence drops to the lowest level since September 2017
  • The S&P 500 and Dow Jones take a step back as the miss in consumer confidence was joined by underwhelming new home sales, casting doubt on the US economy
  • Treasury Yields are dropping this morning as investors seek out the safety of US debt, with the 10-Year yield at 1.987%

The US stock market is off to a rough start this morning on the back of several key economy data points. Consumer confidence and new home sales both disappointed this morning boosting concerns about the strength of the economy. This miss in consumer confidence from the Conference Board reinforces the downward shift in sentiment that UofM’s survey showed earlier this month. The Conference Board Index printed 121.5, down from last month’s reading of 131.3 – the resultant level is the lowest for the Index since September 2017. New home sales also disappointed with 626k, missing expectations of 684k.

SPX 5-Min Price Chart (Intraday) June 25th

SPX

The miss on Tuesday morning’s data is not being brushed off by market participants, with the SPX pushing down to 2,932 and Treasury yields continuing to fall as the 10-Year note hits 1.985%. It could be argued a risk-off sentiment has been reaffirmed by the movement in USDJPY, a common carry trade. Following the data releases, USDJPY fell to 106.83 before making a slight recovery.

USDJPY 3-Min Price Chart (Intraday) June 25th

USDJPY

The price reaction suggests investors are being prudent as the US economy hits some trouble and the Federal Reserve signals a shift in future policy leanings. This morning’s weak consumer confidence can be partially attributed to the recently reinvigorated trade tensions, but participants were also less optimistic about the future of the labor market. The report found consumers expecting fewer jobs in the economy increased from 13 percent in May to 14.8 percent in June.

--Written by Thomas Westwater, Intern Analyst for DailyFX.com

Contact and follow Thomas on Twitter @FxWestwater

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES