US dollar reverses its recovery and falls against the majority of its major counterparts.
The US Dollar (USD) falls versus practically all major peers on what turns out to be a worrisome Thursday. Markets are shaking ahead of the weekly US Jobless Claims report, which is scheduled to be announced later today. This similar data point started the turbulent patch last week before of the US jobs numbers and resulted in the large sell-off on Monday across all asset classes. The economic data schedule is quite light. Because of the fairly quiet trading week in terms of economic data, the weekly Initial Jobless Claims report for the week ending August 2 will grow in significance. Thus, expect a bumpy ride later this Thursday as a result of the Jobless Claims report.
Daily market movers: US dollar loses ground as recession fears return ahead of US jobs statistics.
Former US President Donald Trump is scheduled to conduct a press conference at Mar-a-Lago later this Thursday.
The economic calendar begins at 12:30 GMT with the main event being presented: The weekly jobless claims
Initial claims for the week ending August 2 are likely to increase to 240,000 from 249,000.
Continuing Claims was at 1,877,000. There’s no forecast for The week ending July 26 is scheduled.
At 14:00 GMT, Wholesale Inventories are predicted to expand by 0.2% in June, matching the previous month’s rate.
At 17:00 GMT, the US Treasury will auction a 30-year bond.
Equity markets are losing pace.
Equity markets are losing pace, with practically all European indices in the red. US futures are also down, though only slightly.
According to the CME Fedwatch Tool, there is a 72.5% possibility that the Federal Reserve (Fed) will lower interest rates by 50 basis points in September. Another 25 bps cut is projected by 55.6% in November, with a 27.2% probability of a 50 bps decrease and 17.2% of no cut penciled in for that meeting.
The US 10-year benchmark rate currently trades at 3.91% , down from this week’s high of 3.98%.
