US dollar is under minor selling pressure on Monday.
The United States Dollar (USD) is off to a slow start this week. Some selling pressure emerged in Asia early Monday morning, ahead of a busy week with a lot of data points. The busy week on the macroeconomic calendar coincides with no speeches by US Federal Reserve (Fed) officials, who are in their blackout period ahead of the January 31 rate decision.
Traders are expecting US GDP, PCE data, and an ECB decision this week.
On the economic front, the primary components will be released on Thursday and Friday, with the US Gross Domestic Product (GDP) and the Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation indicator, respectively. The European Central Bank (ECB) will also make monetary policy decisions on Thursday. Until then, Monday promises to be a relatively quiet start to the week, with no major economic data points anticipated.
Daily Market movers: Simple US Dollar start ahead of US GDP and ECB Decision.
China disappointed markets this morning by leaving its Loan Prime Rate unchanged. Several market participants expected some easing to boost the Chinese economy.
The EU may postpone a new $20 billion aid package for Ukraine.
Nasdaq futures rise significantly ahead of the US opening bell.
The US Treasury is going to Markets will allocate a 6-month and a 3-month bill at 16:30 GMT.
Equity markets are increasing across the board, with Japan leading the rally. Both the Nikkei and the Topix are up more than 1% as they approach the closing bell. The laggards are mainland Chinese markets, with the Hang Seng and Shenzhen Index both down more than 1%.
According to the CME Group’s FedWatch Tool, markets are pricing in a 100 percent possibility that the Federal Reserve will hold interest rates steady at its January 31 meeting. Meanwhile, the Fed is under a blackout period, meaning officials will not communicate further until the end-of-month meeting.
The benchmark 10-year US Treasury Note remained flat at 4.13 percent.
