US dollar trades in a range against its key peers.
The US Dollar (USD) trades mixed in Tuesday’s European session, stalling the small recovery observed on Monday, with only one pattern on the quote board holding. The US dollar is up against most major Asian currencies, including the Japanese yen (JPY) and the Korean won (KRW).
Markets are returning to risk-on mode, building on Friday’s gains, as tensions in the Middle East calm slightly.
The risk-on atmosphere appears to have returned to markets, with equities in the green throughout Asia, Europe, and the US futures, as safe-haven flows decline despite Reducing tensions in the Middle East.
On the US economic calendar, the Housing Price Index for June will be the main focus. The second element will be August’s Consumer Confidence Index. Following Monday’s outstanding Durable Goods Orders statistics, the Consumer Confidence Index should also rise.
Daily Market movers: Watch out for pivotal facts.The US Dollar Index is trading sideways, slightly below 101.00.
The US session begins with the Redbook Index for the week ending August 23, which will be published at 12:55 GMT. The prior reading stood at 4.9%.
The housing price index will be announced at 13:00 GMT. The previous figure revealed that prices stayed steady, and a tiny 0.2% increase is projected in June.
At 14:00 GMT, the consumer confidence index for August will be released. The previous number was 100.3, and experts expect it to rise slightly to 100.9.
Also, at 14:00 GMT, the Richmond Fed Manufacturing Index for August will be revealed. An increase is projected from -17 to -14.
Overall, Asian and European equities are higher on the quote board. US futures are taking over the optimistic tone, rising by less than 0.5%.
The CME Fedwatch Tool predicts a 71.5% chance of a 25 basis point (bps) interest rate drop by the Fed in September, against a 28.5% possibility of a 50 bps cut. Another 25 bps drop (assuming September is a 25 bps cut) is projected in November by 50.2%, with a 41.3% chance that rates will 75 basis points (25 + 50) below present levels, with an 8.5% chance of rates falling 100 (25 + 75) basis points.
The US 10-year benchmark rate is currently at 3.82%, a new weekly high.
