US dollar has been trending upwards since late Friday.
The US Dollar (USD) edged up during Monday’s European session, demonstrating how traders always consider the sum of all components. The USD appears to be disregarding market expectations on a dovish US Federal Reserve (Fed) that aims to decrease interest rates in favor of the chance that. Chairman Jerome Powell issued a hawkish pause on Wednesday.
Traders prepare for a very busy week, with all eyes on the Fed’s decision on Wednesday.
On the economic front, some market-moving components are Even before the Fed meeting, the JOLTS Job Openings data for December will be released on Tuesday. On Wednesday, the US Federal Reserve’s rate decision and Chairman Jerome Powell’s speech are due. Traders should keep some ammunition for the following key events on Thursday and Friday: The Institute for Supply Management (ISM) will announce its Manufacturing PMI on Thursday, while Nonfarm Payrolls and the final University of Michigan Sentiment Index will be released on Friday, capping up the week.
Daily roundup of market movers: It’s not only about the Fed.
According to Bloomberg, European Central Bank (ECB) member Luis de Guindos stated. That the Red Sea scenario will not have an impact on the ECB’s forthcoming rate decisions. This contradicts comments from the ECB. President Christine Lagarde stated last week during the rate decision meeting. That the Red Sea crisis could increase inflationary pressures and should be monitored.
A Hong Kong court ruled that Evergrande, a major Chinese construction corporation, was bankrupt and in default. The verdict came after creditors failed to reach a restructuring agreement.
The possibility of conflict between Houthi rebels and US soldiers in the Red Sea has increased once more. According to various headlines published over the weekend.
At 15:30 GMT, the Dallas Fed Manufacturing Business Index for January will be revealed. The previous number was -9.3.
The US Treasury will issue a three-month and six-month bill about 16:30 GMT.
European equity markets are looking for direction, even as Asian indices closed in. green earlier this Monday. In Japan, both the Nikkei and the Topix closed up roughly one percent. US futures are flat to slightly negative.
According to the CME Group’s FedWatch Tool, markets are pricing in a 97.9% chance of an unchanged interest rate decision on Wednesday. With a minuscule 2.1% chance of a drop.
The benchmark 10-year US Treasury Note trades around 4.12%. And is displaying slight signs of a breakage in correlation with the US Dollar Index (DXY). Although the US dollar is strengthening on Monday. The US bond market is not following suit.
