US dollar advantages are eroded as Richmond Manufacturing figures fall further.
The US Dollar (USD) sees its gains in the lead-up to the Richmond Manufacturing statistics somewhat reversed by yet another miss on estimates. Markets meanwhile are having difficulty. With the Bank of Japan (BoJ) rate decision this Tuesday. Kazuo Ueda, governor of the Bank of Japan, has tested markets’ patience by not raising interest rates. And delayed the long-awaited escape from negative rates. Markets are starting to rebound approaching the US opening bell after the first reaction was very Negative in reaction to the BoJ’s nerve game, with US rates rising and equities flat to slightly negative.
Moreover On the economic front, the Richmond Manufacturing Index’s failure on predictions is eroding. The US Dollar’s earlier gains in anticipation of the figure. All eyes will now be on Thursday and Friday. With the US GDP on Thursday and Personal Consumption Expenditures on Friday. On the other side of the Atlantic, the European Central Bank is scheduled to have its inaugural meeting on Thursday.
Daily market movers:US Dollar missed estimates.
The United States has launched more strikes on Houthi rebel sites in Yemen.
The Bank of Japan (BoJ) has held its interest rates unchanged. Governor Kazuo Ueda stated that even after negative interest rates expire, easing will continue. There was no commitment on when the real hike would occur. Markets are recovering after initially underperforming due to uncertainty over the timing of the first rate hike.
Furthermore RBC reports that holders of Belarusian EU bonds have submitted a notice of default to Minsk.
Richmond Fed Manufacturing Index for January was released.
Around 15:00, the Richmond Fed Manufacturing Index for January was released. The previous number was -11, with -7 predicted. The current number is -15, indicating that the industry will decrease further.
Around 16:30, the US Treasury will allocate a 52-week bill.
The US will place a two-year note on the markets. Treasury nears 18:00.
Following an early negative reaction to the BoJ. Equity markets have recovered. European and American stock markets are beginning to rise.
According to the CME Group’s FedWatch Tool, markets are pricing in a 97.4% chance of no change in interest rates. With a minuscule 2.6% chance of a drop.
The benchmark 10-year US Treasury Note has rebounded to 4.13%. After falling below 4.10% on Monday and is expected to retain that level through the US opening bell.
