US Dollar remained in a narrow range ahead of Thursday’s huge data dump.
The US Dollar (USD) is trading in a narrow range, with investors concerned about the anticipated US inflation figures. Traders will want to stay out of the market ahead of the main event on Thursday, when the Consumer Price Index (CPI) statistics for the United States will be published. Expectations have never been higher, since another downturn in the figures will increase the likelihood of the Federal Reserve (Fed) cutting interest rates sooner. instead of later, and vice versa.
Traders are waiting for any comments from Fed Chairman Williams.
On the economic front, the only noteworthy event is the scheduled address of New York Federal Reserve President John Williams. Known for his neutral stance on the Federal Open Market Committee (FOMC), any hawkish or dovish comments could cause a market reaction. He is scheduled to speak at approximately 20:15 GMT on Wednesday.
Daily Market movers for the day: A light calendar for US Dollar ahead of the CPI.
The Mortgage Bankers Association (MBA) issued its weekly Mortgage Applications number at 12:00 GMT. The last week of December registered -10.7%, whereas the first week of January registered a positive 9.9%.
US Wholesale Inventories were scheduled to be revealed at approximately 15:00. The end result was a November saw a consistent -0.2%, which was in line with forecasts.
The US Treasury will return to the markets shortly after 18:00 GMT for a 10-Year Note Auction.
The main event for this Wednesday will be a speech by New York Fed member John Williams at 20:15 GMT.
On Wednesday, equity markets were split, with Japan surging further and the Nikkei setting new all-time highs. China is suffering from unfavorable outcomes, and traders are waiting for more stimulus packages from the Chinese government before investing in Chinese shares. European and US markets are up, with an overall gain of about 0.50%.
According to the CME Group’s FedWatch Tool, markets are pricing in a 95.3% possibility that the Federal Reserve will hold interest rates steady at its next meeting. Meeting on January 31st. Around 4.7% expect the first cut to occur soon.
The benchmark 10-year US Treasury Note is hovering around 4%, with pressure mounting for rates to fall. This could indicate that the US dollar is about to weaken.
