US Dollar is locked in a battle between bears and bulls.
Since its poor performance before Christmas, the US Dollar (USD) has been hovering on the verge of a significant decline. On the US Dollar Index (DXY) chart, a large area is open for the Greenback’s value to fall quickly. With many trading desks operating at half capacity and most businesses idle for the holiday season, limited liquidity may either save the dollar or make it worse.
Equities are trading flat, with US futures cautious to extend the Christmas rally.
Some good news on the economic front The Richmond Fed Manufacturing Index will be released shortly. The market’s reaction to the figures should be somewhat modest. The risk element will be the key driver, with equities either rising or falling by year’s end.
Daily Market movers: A mild schedule awaits.
The Richmond Fed Manufacturing Index for December is scheduled to be released around 15:00. Previous was -5, with a -7 forecast for this month.
The US Treasury will have some staff come into the office at 18:00 GMT to allocate a 5-year note in the market.
This Wednesday, stocks are quite geographically divided: Asian markets are surging higher, with major indices in Japan and China gaining more than 1%. European shares appear hesitant to capitalize on Asia’s good sentiment and are only slightly higher. By less than 0.5%, we are in the green. All US futures are trading modestly lower.
According to the CME Group’s FedWatch Tool, markets are pricing in an 85.5% possibility that the Federal Reserve will hold interest rates steady at its meeting on January 31. Around 14.5% expect the first cut to occur soon.
The 10-year US Treasury Note is trading near 3.86%, its lowest level since the summer. By less than 0.5%, we are in the green. All US futures are trading modestly lower.
According to the CME Group’s FedWatch Tool, markets are pricing in an 85.5% possibility that the Federal Reserve will hold interest rates steady at its meeting on January 31. Around 14.5% expect the first cut to occur soon.
The 10-year US Treasury Note is trading near 3.86%, its lowest level since the summer.
