US dollar is pushed up, flirting with a new two-month high.
The US Dollar (USD) rose on Wednesday after breaking over a major resistance level in the US Dollar Index (DXY). The Greenback gained a boost after former President Donald Trump appeared on Bloomberg television to outline his objectives if he wins the November 5 presidential election. Trump’s strong words on trade, taxation, and the Federal Reserve (Fed) sent the Greenback higher against most major currencies. Currency peers appear to be pricing in a Republican nominee victory.
The US economic calendar is sparse on Wednesday, with no major market-moving data and no Fed officials scheduled to speak. Expect traders to sit on their hands ahead of the European Central Bank’s (ECB) meeting on Thursday.
Daily Market movers:US Dollar Index surpasses a critical mark on its approach to 104.00.
Former President Donald Trump appeared in an interview with Bloomberg during Tuesday’s US session. He used the forum to discuss his intentions for trade, the US economy, and the Fed. His statements boosted the US Dollar to new two-month highs against the Euro (EUR) and the Chinese Yuan.
Looking at the calendar, weekly mortgage applications The Mortgage Bankers Association (MBA) was scheduled to provide information at 11:00 GMT. Applications dropped by a stunning 17%, following a 5.1% drop the previous week.
The September Import/Export Price Index will be released at 12:30 GMT.
Monthly export prices are expected to fall by 0.4%, compared to a 0.7% drop in August, while the Monthly Import Price Index is expected to fall to 0.4, down from a negative 0.3% in August.
Equities were unevenly, with Chinese markets closing significantly lower and Japan up for the day. European equities appear slow, while US futures remain somewhat flat.
The CME Fed rate expectation for the meeting on November 7 predicts a 94.2% chance of a 25 basis point rate drop, while the remaining 5.8% assumes no rate decrease. Chances of a 50 basis point rate drop have been totally priced out.
The US 10-year benchmark rate is trading at 4.00%, somewhat lower than the high of 4.11% set last week on Thursday.
