US dollar is back in the green, ending this week’s losing streak.
The US Dollar (USD) has returned to flat territory, near the opening level of 2024. And this year’s performance could still become negative. Another notable feature is that the US Dollar selling frenzy occurs exactly at 12:30 GMT. This could indicate that US hedge funds are being particularly active for the third day in a row. Observing recent changes in hedge funds’ speculative futures positions on the Japanese yen, US dollar, and euro.
On the economic data front, the Federal Open Market Committee (FOMC) Meeting Minutes for July will be released. But they are not likely to shift the needle before Jackson Hole on Friday.
The Nonfarm Payrolls revision comes in at -818,000, which is fewer than the predicted -1,000,000.
Aside from the FOMC Minutes, the Nonfarm Payrolls Benchmark revision has come in with a downward adjustment of 818,000. Which is lower than the feared nearly 1,000,000,000 amount shared throughout banks. Markets were already shaken by the latest US Nonfarm Payrolls report on the first Friday of August, a data point that sparked the unwinding of the carry trade, resulting in spillover effects in stocks and recession concerns for the US economy. Despite the Although modifications will not cover August, they do help the Greenback acquire some momentum for a revival.
Daily market movers: Nonfarm revisions are marginally softer.
Mortgage applications declined by 10.1% on Wednesday compared to the previous week.
The nonfarm payrolls benchmark change is scheduled for 14:00 GMT. The adjustments covered the 12 months up to March of this year and resulted in a milder downward revision of 818,000, compared to the nearly 1 million projected by most institutions.
The US Treasury is scheduled to issue a 20-year bond at 17:00 GMT.
The Fed’s minutes from the July meeting will be released at 18:00 GMT.
Asian equity markets are under some pressure. the red, which helps the US dollar strengthen slightly. European and American stocks are on the rise.
The CME Fedwatch Tool predicts a 69.5% chance of a 25 basis point (bps) interest rate drop by the Fed in September, against a 30.5% possibility of a 50 bps cut. Another 25 basis point decrease (assuming September is a 25 basis point cut) is projected in November by 50.9%, with a 40.9% likelihood that rates would be 75 basis points lower than current levels and an 8.2% chance that rates will fall 100 basis points.
The 10-year benchmark interest rate in the United States is currently at 3.81%, a new weekly low.
