US dollar opens slightly lower despite some volatility over the weekend.
Despite two major news stories over the weekend, the US Dollar (USD) is trading slightly lower on Monday morning. First and foremost, former US President Donald Trump made contentious remarks. In which he stated that he would “encourage” Russia if any North Atlantic Treaty Organization (NATO) member country failed to pay its financial obligations to NATO.
Moreover Trump’s words sparked fear across Europe, as it indicates that if Trump is elected, the United States may withdraw its entire support for Ukraine. The Israeli army’s assault on Rafah, which has ringed the city and is attempting to destroy any remaining Hamas strongholds, was the second geopolitical event to have an influence on markets.
On the economic front, an already exciting start to the week awaits, with no fewer than two US Federal Reserve members making an appearance.
US Dollar Traders are anticipating the main event this week, which will be the release of US CPI statistics on Tuesday.
Traders will aim to keep their powder dry until the major event on Tuesday, when the US Consumer Price Index statistics for January are released. The modifications made on Friday, using a new calculation method, indicated that inflation would fall further. So, any further disinflation would result in some US Dollar decline. ahead.
Daily Market movers: Inflation predictions increase disinflation.
A $95 billion aid bill for Ukraine, Israel, and Taiwan got enough votes to be approved by the US Senate.
Several European heads of state have already blasted. Former US President Donald Trump’s comments about Russia and its free pass to enter Europe if Trump is elected.
Michelle Bowman, a governor of the US Federal Reserve, is scheduled to talk about 14:20 GMT.
Fyrthermore The US Treasury will hold an auction of 3-month. And 6 month bills near 16:30 on Monday.
Neel Kashkari of the Federal Reserve Bank of Minneapolis is scheduled to talk at approximately 18:00.
The Financial Management Service is scheduled to release the Monthly Budget Statement. Expectations for January are $-21 billion, down from $-129 billion earlier.
Moreover This Monday, equity markets seem a little naive, not really charging out of the gate. The most important thing to remember this Monday is that China is closed due to a holiday. The European indices are slightly up in the middle of the session.
The CME Group’s FedWatch Tool is now tracking the March 20th meeting. Expectations for a pause are 82.5%, with 17.5% expecting a rate drop.
The benchmark 10-year US Treasury Note is trading near 4.16% at the start of this Monday.
