US Dollar drops to a one-month low.
The markets are devaluing the US dollar (USD) as a result of the country’s rates surging to a record multidecade high. Given that the same yields sustained the summer surge in the Greenback from July until mid-October. It almost sounds Shakesperian. The 10-year benchmark yield broke the psychological 5% barrier. Which led to widespread selling of the Greenback and the largest intraday loss. The US Dollar Index has seen since July. Regarding economic data. There may be more movements to come when the Purchase Managers Index (PMI) figures for October are released.
The markets will get an opportunity to examine the behavior of the leading indicator and what it has to say about the prognosis for the US economy going forward. Given that it was previously slightly above 50 and that a break below 50 would indicate an economy in contraction with further US Dollar depreciation to be taken into account, the services component in particular might act as a catalyst.
Daily summary: US Dollar prioritizes PMI
The US Redbook Index is due at 12:55 GMT. The prior year-over-year figure was 4.6%, and no projections were made.
The Case Shiller Home Price Index around 13:00 is scheduled to publish its annual performance figure in August. It was previously at 0.1%.
The primary event on Tuesday is the release of the Manufacturing, Services, and Composite Index PMI data at 13:45 GMT. It is anticipated that manufacturing will shrink from 49.8 to 49.5. It is anticipated that services would enter the contraction regime by falling from 50.1 to 49.9. The Composite was at 50.2, and a contraction is also anticipated.
The Richmond Fed Manufacturing Index for October is expected to be released at 14:00 GMT, with an 8 predicted score and a previous value of 5.
The US Treasury intends to attempt a bond market auction of a 2-year Note.
Even though nothing is very compelling, stocks are rising. Asia has none of Over 0.50% is gained by the major indices. Very varied results in Europe; while better than the US, all components of the PMI were still below 50. US futures are little up ahead of Alphabet’s and Microsoft’s reports.
Markets are pricing in a 98.4% possibility that the Federal Reserve will maintain interest rates at its meeting in November, according to the CME Group’s FedWatch Tool.
The benchmark US Treasury yield on the 10-year note currently trades at 4.81%; on Monday, it momentarily surged beyond 5.05%, a multi-year high. Despite the fast decline in yields, the fact that the pain threshold has been crossed may indicate that the bond market is in for further suffering.
