US dollar trades down at the start of the week.
The US Dollar (USD) is trading significantly lower on Monday, reaching its lowest level since mid-January, owing primarily to a more than 1% advance in the Japanese Yen (JPY) against the Greenback. Furthermore The Commodity Futures Trading Commission (CFTC) revealed on Friday that hedge funds are net long in the Japanese yen. And Asian and European investors appear to be following suit on Monday. The Japanese yen accounts for 13.6% of the US Dollar Index (DXY).
Daily Market Movers:US Dollar index is approaching 101 and may fall further.
The rise has weighed on the index’s performance on Monday, sending it to lows not seen in nearly seven months.
On the economic front, the data is off to a slow start this week. With all eyes focused on Wyoming at the end of the week for the annual US Federal Reserve’s Jackson Hole Symposium. Moreover The event will feature the crème de la crème of central bankers, including Fed Chairman Jerome Powell. And known for providing an opportunity for the Fed to telegraph a change in monetary policy outside of scheduled meetings. Moreover In the run-up to that event, various headlines will come out from other central bankers. And the US Purchasing Managers Index (PMI) data on Thursday will give the newest views on The rise has weighed on the index’s performance on Monday. Sending it to lows not seen in nearly seven months.
Data is off to a slow start this week, with all eyes focused on Wyoming at the end of the week for the annual US Federal Reserve’s Jackson Hole Symposium.
On the economic front, the data is off to a slow start this week, with all eyes focused on Wyoming at the end of the week for the annual US Federal Reserve’s Jackson Hole Symposium. The event will feature the crème de la crème of central bankers, including Fed Chairman Jerome Powell. And is known for providing an opportunity for the Fed to telegraph a change in monetary policy outside of scheduled meetings. In the run-up to that event, various headlines will come out from other central bankers. And the US Purchasing Managers Index (PMI) data on Thursday will give the newest views on over 1%. While Japanese equities are down more than 1%. European shares are similarly looking for direction, with US futures trading flat.
Moreover The CME Fedwatch Tool predicts a 72% possibility of a 25 basis point (bps) interest rate drop by the Fed in September. Against a 28% chance of a 50 bps cut. Another 25 basis point decrease (assuming September is a 25 basis point cut) projected in November by 53.7%, with a 39.2% likelihood that rates will be 75 basis points lower than present levels and a 7.1% chance that rates will fall 100 basis points.
The US 10-year benchmark rate is currently at 3.86% and is looking for direction following last week’s decline.
