US dollar rose in late-day trade on Tuesday as news from Capitol Hill indicated that no deal was in sight.
The US Dollar (USD) has been setting new highs for the previous 40 weeks. With the deadlock on Capitol Hill being the major driver this week. Both the Senate and the House are bringing legislation to the floor. But none is sufficient to prevent a government shutdown by October 1. As the deadline approaches. It appears increasingly probable that the US government will be shut down by Saturday.
Markets may be left in the dark about where the United States stands. In terms of macroeconomic circumstances if the shutdown is prolonged. As several agencies will cease reporting economic statistics.
Durable Goods Orders report is important on Wednesday’s economic calendar.
The Durable Goods section was the big event on Wednesday. With overall Durable Goods Orders for August coming in at 0.2% vs -5.6% the previous month. When transportation is excluded, increased even more from 0.1% to 0.4%, indicating. That the US consumer remains robust. The US Energy Information Administration (EIA) will also provide data on US oil stockpiles. Since the current Cushing stockpile reserve is at its lowest level in a decade. The figures might cause oil prices to rise again.
The US dollar has been designated as a safe haven.
The Mortgage Bankers Association (MBA) was established. It released its Mortgage Applications figure for the previous week at 11:00 GMT. Application rates fell from 5.4% to – 1.3%.
In a good way, Durable Goods outperformed expectations: Overall Durable Goods for August came in at 0.2%, reversing a prior negative trend of -5.4%. Durable Goods excluding Transportation increased to 0.4% from 0.1% before.
The highly anticipated US crude inventory update from the EIA is coming at 14:30. In addition to the decrease in crude stockpiles, the present Cushing reserves will be a market driving factor for oil prices.
At 17:00, the US Treasury is slated to launch a 5-year bond auction.
Equities are all in the green, from Asia to futures in the United States. Markets are attempting to ignore the bad. The last several days have been gloomy.
According to the CME Group FedWatch Tool, markets are pricing in an 80.4% possibility that the Federal Reserve will hold interest rates steady at its November meeting.
The benchmark 10-year US Treasury yield rose as high as 4.51%, a modest decrease from Monday’s top, as investors begin to buy safe bonds as a hedge against a potential US government shutdown.
