US dollar is trading flat and is looking for direction.
The US Dollar (USD) appears to be drifting this week. Looking for direction or a spark to guide it in any way. The fact that the US Dollar Index is precisely in the midst of this week’s trading range indicates. That the Greenback is tired as traders try to assess the current scenario in terms of a recession or a soft landing for the US economy.
Traders will be looking for signs and direction from Federal Reserve Chairman Powell.
In terms of economic data, traders will be searching for cues from the US Federal Reserve speakers scheduled for this Thursday. If there is an increase in unemployment figures, the weekly jobless claims could shed some illumination and validate the dismal US jobs data from last week. That might be an early warning sign. Sending the US Dollar down against most major currencies.
The US Dollar is on hold for the time being.
The US 10-year bond auction on Wednesday was a huge success, with the bond being priced at 4.519%, up from 4.610% previously. The Bid/Cover Ratio was 2.45, down from 2.50 previously. As a result, there was greater demand for each tranche than was required to fill the bond.
Philadelphia Fed President Patrick Harker stated early Thursday that interest rates should remain higher for a longer period of time and that the fight against inflation is still ongoing.
Early morning comments from European Central Bank’s Luis De Guindos made it plain. That he thought rate reduction were too soon to be considered. And that there was a possibility of an inflation rise in the coming months.
The number of initial jobless claims is likely to climb from 217,000 to 218,000.
The jobless claims are scheduled to be released around 13:30 GMT:
The number of initial jobless claims is likely to climb from 217,000 to 218,000.
The number of people filing for unemployment benefits is predicted to rise from 1.818 million to 1.820 million.
Raphael Bostic, President of the Atlanta Federal Reserve, is scheduled to speak at 14:30 GMT. And Thomas Barkin, President of the Richmond Federal Reserve, is scheduled to speak at 16:00 GMT.
The US Treasury will also have a busy day and will be pleased to do two bond placements at lower rate levels a 4-week bill auction and a 30-year bond sale are scheduled for 16:30 GMT and 18:00 GMT, respectively.
To cap up the day, traders will be looking for comments from US Federal Reserve Chairman Jerome Powell during a panel discussion on monetary policy for the IMF at 19:00 GMT.
This Thursday, stocks are painting a pretty binary picture: Japan’s equities are in the black, with the Nikkei and the Topix up more than 1%. The Chinese Hang Seng, like European and US markets, is flat.
According to the CME Group’s FedWatch Tool. Markets are pricing in a 90.4% possibility. That The Federal Reserve will leave interest rates steady at its December meeting.
Following a successful allocation by the US Treasury earlier on Wednesday. The benchmark 10-year US Treasury yield trades at 4.53%.
