CB Consumer Confidence Rises To Yearly Highs As Consumers Expect Further Declines In Inflation

Key Insights

• CB Consumer Confidence increased from 102.3 in May to 109.7 in June. 
• New Home Sales grew by 12.2% in May. 
• Gold pulled back towards the $1915 level as traders bet on a more hawkish Fed.

On June 27, The Conference Board released CB Consumer Confidence report. The report showed that Consumer Confidence improved from 102.3 in May to 109.7 in June, compared to analyst consensus of 104.

The Expectations Index, which is based on consumers’ short-term outlook for income, business, and labor market conditions, increased from 71.5 to 79.3. Numbers below 80 are associated with a recession.

The Conference Board commented: “Consumer confidence improved in June to its highest level since January 2022, reflecting improved current conditions and a pop in expectations.”

Today, traders also had a chance to take a look at the New Home Sales report for May. The report showed that New Home Sales increased by 12.2% month-over-month in May, compared to analyst consensus of -1.7%.

U.S. Dollar Index rebounded from sesssion lows as traders reacted to the encouraging reports. At this point, markets expect that Fed will raise the federal funds rate to 525 – 550 bps and keep the rate at this level until the end of the year. Traders are not ready to bet on two additional rate hikes.

SP500 remains stuck below the 4350 level. The reports did not provide additional support to stocks as traders remain worried about hawkish Fed.

Gold pulled back towards the $1915 level after the release of the reports. Gold traders believe that the Fed could be more hawkish than expected, which is bearish for gold markets.

For a look at all of today’s economic events, check out our economic calendar.