US dollar takes off again, crushing all of its G20 counterparts.
The US Dollar (USD) extends its climb on Tuesday, as the Trump trade adds to another round of US Dollar buying. The dollar is destroying markets, steamrolling across the quote board against other major currencies.
The Trump trade is the primary driver of the Greenback.
The US Federal Reserve (Fed) continues to decrease interest rates, but President-elect Donald Trump’s rollout plan favors equities due to the likelihood of stimulus and tax cuts once Trump takes office.
The US economy In terms of data, the calendar is rather bare this Tuesday, with figures from the National Federation of Independent Business (NFIB) and the TechnoMetrica Institute of Policy and Politics. Markets will instead concentrate on the group of Fed speakers who will talk this Tuesday. Following Fed Chairman Jerome Powell’s pledge to remain data-dependent, a continuation of the rate-cutting cycle might bolster the current Trump trade surge in equities and the US dollar even further.
Daily market movers: US Dollar index passes through a series of strong resistances.
The National Federation of Independent Business (NFIB) Optimism Index, which measures sentiment among US small and medium-sized businesses, rose to 93.7 in October from 91.5 the previous month, above market forecasts.
TechnoMetrica Institute of Policy and Politics. The Economic Optimism Index for November will be release around 15:00 GMT. A similar pattern to the NFIB number is projected, with the figure rising to 47.3 from 46.9.
Four Fed speakers scheduled to offer comments to the market:
At 15:00 GMT, Federal Reserve Governor Christopher Waller will make the keynote speech at the Clearing House Annual Conference in New York.
Around 15:15 GMT, Thomas Barkin of the Federal Reserve Bank of Richmond delivers a speech and takes part in a moderated Q&A session at the Together Summit in Baltimore.
At 19:00 GMT, Federal Reserve Bank of Minneapolis President Neel Kashkari takes part in a moderated discussion on “The Fed’s New Focus” at the Yahoo Finance Invest event in New York.
Finishing up this Tuesday at 22:00 GMT, Reserve Bank of Australia.
The city of Philadelphia Patrick Harker gives a talk about Fintech, AI, and the Changing Financial Landscape at the Carnegie Mellon University Lecture Series.
Equities are reversing Monday’s gains, with European averages down over 1%. US futures appear grim ahead of the US opening bell.
The CME FedWatch Tool expects the Fed to decrease interest rates by another 25 basis points (bps) during its meeting on December 18. There is a 31.2% likelihood that interest rates will remain unchanged. While the rate-cut scenario is the most likely, traders have reduced some of their rate-cut bets from a week ago.
The US 10-year benchmark rate is 4.35%, up substantially following Monday’s bank holiday.
https://voiceoftraders.com/analysis/eurusd-falls-on-trump-tariff-concerns-with-us-inflation-in-focus
