US Dollar is trading flat on Thursday after a four-day winning streak.
The US Dollar (USD) improves for the fifth day in a row, according to the US Dollar Index (DXY), which serves as the benchmark for the Greenback’s performance. China’s Housing Minister stated on Thursday that the country will open a 4 trillion Yuan (CNY) funding to boost its domestic housing market, which is significantly lower than the initial 6 trillion Yuan. Announced on Monday, and adds to momentum for former US President Donald Trump to take a larger lead in the polls in the run-up to the November 5 Presidential Elections.
Traders await the ECB’s rate cut estimates, with Germany stuttering.
The US economic calendar packed on Thursday. In addition to the typical weekly jobless claims, Retail Sales and a number of leading indicators concerning the US economy and activity will be provide. If that isn’t enough, the European Central Bank (ECB) expected to lower interest rates by another 25 basis points (bps), with the key question being whether ECB President Christine Lagarde is willing to deliver a hawkish rate cut while Germany, Europe’s economic engine, is severely stuttering.
Daily Market movers: ECB and Lagarde on deck.US Dollar Index surpassed a crucial milestone and appears to be on its way to 104.00.
The US calendar kicks off. at 12:30 GMT with a bulk release of data.
The weekly jobless claims:
Initial Claims for the week ending October 11 are likely to remain unchanged at 258,000 from the previous week.
The Continuing Claims for the week ending October 4 predicted to rise to 1.87 million from the previous 1.861 million.
Moreover It will be fascinating to observe how the hurricanes in Florida and the Gulf region impacted claims figures.
September Retail Sales:
Monthly headline Retail Sales predicted to increase by 0.3%, up from 0.1% in the previous reading.
Monthly retail sales, excluding vehicles and transportation, should increase at a steady rate of 0.1%.
The Monthly retail sales, excluding vehicles and transportation, should increase at a steady rate of 0.1%.
The Philadelphia Fed Manufacturing Survey for October predicted to rise to 3.0, up from 1.7 in September.
At 13:00 GMT, Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee greets attendees at the Fifth Annual Exploring Career Pathways in Economics and Related Fields Conference.
At 13:15 GMT, the Fed publishes September Industrial Production data, which is predicted to fall by 0.2% compared to a 0.8% increase in August.
Furthermore At 14:00 GMT, the National Association of Home Builders (NAHB) will release the October Housing Market Index. The expectation is for an increase to 43 from 41 in September.
Furthermore The European Central Bank (ECB) will disclose its rate decision at 12:15 GMT, followed by a press conference where ECB President Christine Lagarde will deliver a statement and answer questions around 12:45 GMT. GMT.
Moreover Investors in Asian equities have been disappointed by the lackluster reaction to China’s supportive measures for its domestic housing sector. Both Japan and China’s equities indices closed in the red. European markets are performing better as traders anticipate a rate decrease from the ECB, while US futures are trading flat to slightly higher.
The CME Fed rate expectation for the November 7 meeting suggests a 92.1% chance of a 25 basis point rate drop, with the remaining 7.9% pricing in no cut. Chances of a 50 basis point rate drop have been totally priced out.
The US 10-year benchmark rate is currently trading at 4.04%, having flirted with a break below 4% on Wednesday.
