US dollar is flat today following Friday’s whipsaw action.
Following a wild ride on Friday, the US dollar (USD) trades mostly stable on Monday. Which is likely bad news for intraday and short term traders. Following a positive headline number in the US Jobs report. The US Dollar Index (DXY) surged much higher.
However, this gain was completely reversed and the index fell due to extremely low Employment numbers. In the Institute for Supply Management (ISM) Services PMI survey. In addition to the fluctuations brought on by releases of economic data. Traders must revalue the US dollar while accounting for growing geopolitical unrest. And growing anticipation of Fed interest rate decreases.
Only the Consumer Credit data for November is due on Monday. Which should be a peaceful day for the economy. Since multiple banks have indicated they are witnessing an increase in payment arrears. The attention on credit scores, loans, and defaults is probably going to intensify in the upcoming months. The US inflation figures on Thursday will be the big event of the week.
Daily Market Movers: US Dollar Operating at full capacity.
German factory orders are slightly increasing in November compared to October, moving from -3.7% to 0.3%. An estimated 1.1% jump was anticipated. Due to this, the US Dollar surged against the Euro to reach the highest point of the session (the EURUSD session’s minimal).
The Middle East is becoming more tense as Israel claims to have found Chinese weapons in a Hamas storage.
Evergrande, the largest construction company in China, has a 17% decline in Hong Kong on rumors that its Vice Chairman has been arrested.
China has sanctioned five US defense industry businesses following a US arms sale to Taiwan, in a tit-for-tat relationship with the US.
According to Dallas Fed President Lorie Logan, the Fed need to start talking about a slowing in its balance sheet runoff.
At 15:30 GMT, the US Treasury will place a 3-month and a 6-month bill in an attempt to test the markets.
November’s US Consumer Credit Change is scheduled to be released at 2:00 GMT, with a credit increase anticipated from $5.13 billion to $9 billion.
At the beginning of this week, all equity markets are down. With a drop of almost 0.50%, Dow Jones futures are leading the slide.
Markets are pricing in a 95.3% possibility that the Federal Reserve will maintain interest rates at its meeting on January 31, according to the CME Group’s FedWatch Tool. Approximately 4.7% anticipate the first cut to occur already.
Following Friday’s spectacular ride, the benchmark 10-year US Treasury Note has recovered the territory above 4%.
