US dollar has recovered all of its losses from earlier this week.
The US Dollar (USD) is continuing where it left off on Thursday. Demonstrating its tenacity after one component of the monthly headline inflation indicator rose despite all odds. Inflation worries resurfaced, sparking a bond sell-off.
Moreover the rise in US rates has fueled the Greenback’s climb against most major rivals. Where the US Dollar Index is now trading, it appears that this week’s dip was simply a minor decoupling, and additional US Dollar gain is to be expected.
On the data front, there isn’t much that could turn this ship around on Friday. There are no Federal Reserve speakers scheduled.
Moreover There are no genuine market shifting catalysts in the Import/Export Price Index or the University of Michigan (ISM) Sentiment Index.
Daily market movers: The US Dollar fluctuates.
The September Import-Export Price Index will be issued at 12:30 GMT: Monthly export prices are predicted to rise by 1.3% to 0.5%. The annual component was -5.5% and is predicted to decrease to -4.0%. Monthly import prices are projected to remain constant at 0.5%. The annual component is predicted to fall from -3% to -1.4%.
The University of Michigan (ISM) will issue its Sentiment Index and Consumer Confidence Index at 14:00 GMT. Expected inflation. The Sentiment Index is forecast to fall from 68.1 to 67.4. Inflation is predicted to stay stable at around 2.8%.
Equities are losing ground as a result of the present shift in sentiment: The Hang Seng is the worst performer, down more than 2%.
Furthermore European shares are also falling, but by less than 1%. For the time being, US equities futures remain flat and devoid of direction.
Furthermore According to the CME Group FedWatch Tool, markets are pricing in a 90.2% possibility that the Federal Reserve will hold interest rates steady at its November meeting.
Moreover The 10-year US Treasury yield jumped to 4.66%, momentarily touching 4.69%. The unexpected increase in headline inflation sent the bond market back to higher rates.
