US dollar surges for the second day in a row.
The US Dollar (USD) is basking in the glow of traders’ renewed belief. Last year, markets challenged the US Federal Reserve (Fed) by pricing in more rate cuts than the dot plot indicated, but now investors are defying the US central bank in the opposite manner.
Traders are challenging the Fed’s dovish approach, throwing doubt on its prediction of three rate cuts this year.
Markets are growing their bets in the Greenback on the assumption that the Fed will not lower interest rates three times. times as expected on Wednesday, but only two, as economic figures show the US economy is still growing at a robust rate.
On the economic front, no major data is likely to be revealed this Friday. However, markets will head into the weekend with three US Federal Reserve speakers scheduled. The comments of US Federal Reserve Chairman Jerome Powell had little market-moving influence.
Daily Market movers: Time to round off the week.
China and Russia are blocking the US’s cease-fire plan at a United Nations meeting.
US sanctions might have a significant impact on China’s IT market, causing a sell-off and a lower Yuan against most G7 counterparts. Views that China is Investors and hedge funds are beginning to lose confidence in the country’s economic recovery.
Three Fed speakers are scheduled to talk this Friday to wrap out the week:
Fed Chairman Jerome Powell has already made comments, but there were no major takeaways that influenced the markets.
Michael Barr, the Fed’s Vice Chair for Supervision, will talk at roughly 16:00 GMT.
Raphael Bostic, President of the Atlanta Fed, will make remarks at 20:00 GMT to officially finish the US calendar.
Equities are quite mixed, with Chinese indexes falling more than 1%, including the Shenzhen index, while the Hang Seng is down more than 2%. European markets have taken on a gloomy tone, though only by half a percent. US equities are also trending downward, albeit only slightly.
According to CME Group’s According to the FedWatch Tool, estimates for the Fed’s May 1 meeting are 91.0% for the rate to remain steady, with 9% for a rate drop.
The benchmark 10-year US Treasury Note, which now trades at 4.21%, is beginning to fall further.
