Hello, dear traders! We hope you have a great day! Let’s see what news is worth following today! Market closing US stock exchanges will be closed due to the Thanksgiving holiday…
US consumer debt surge can't outpace wages forever
American consumers are currently taking out debt at a far faster rate than their real incomes or the US economy is surging, and America might be hitting a fresh high in employment.
US consumers have run up more than $1 trillion on credit cards, reaching a level not observed since January 2009 and up 6.2% from the previous year. By the way, wages are up less than 3% and the American economy is surging just under 2% a year.
Student as well as car loans are also at $1-trillion-plus levels and also surging twice as fast as wages or the US economy.
The overall percentage of disposable income the average household requires to service debt is approximately 10%, close to all-time minimums. The same applies to interest rates. By the way, when interest rates change at extremely low levels, small increases in absolute terms imply huge increases in proportional ones.
Fed tightening, and also both balance sheet as well as interest rate variety will just serve for the purpose of straining liquidity conditions and raising debt service costs.
Today, two events will shake the US dollar. First, at 16:45 GMT+2, Markit, a statistical company, will release the US Flash Services PMI. Moreover, at 21:00 GMT+2, the Federal Reserve will release its meeting minutes.
This Wednesday will be heaven for day traders. A considerable number of events will make the market volatile. Don't miss it!
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Good morning, dear traders! Hope you’re doing great! Let’s talk about the news that is worth following today! Key market events: 15:30 MT, CAD GDP m/m 17:00 MT, GBP BOE Gov Bailey Speaks Oil is tensed again Oil rose as China refined its approach…