US dollar traded in a range on Tuesday ahead of the release of the FOMC Minutes.
During the Asian trading session on Tuesday, the US Dollar (USD) hit a new two-month low. The US dollar is down more than 0.50% against the Japanese yen (JPY) and the Chinese renminbi (CNY). As general risk sentiment appears to favor risk-on investment, with equities jumping and safe havens declining. Adding to the Greenback’s depreciation call.
Traders are favoring risky bets, eroding safe haven currencies such as the Swiss franc and the USD.
This Tuesday’s calendar is filling up quickly, with one The FOMC Minutes from the most recent Federal Reserve (Fed) meeting in November. When the central bank chose to leave interest rates steady, will be released at the end of the day. Traders and analysts will be looking for signs and side remarks on whether inflation is falling swiftly enough for the Fed to conclude its rising cycle and either maintain stable or immediately initiate a reducing cycle. On Monday, the Chicago Mercantile Exchange (CME) Fed Fund future measure. That assesses market expectations of probable Fed funds rate adjustments. Momentarily priced in a slight likelihood of a rate cut at the forthcoming December meeting.
Daily Market movers:The US Dollar Index falls to roughly 103.00, with further declines possible.
The Chicago Fed National Activity Index for October is released at 13:30 GMT. Kicking off Tuesday’s economic calendar. The previous reading was 0.02.
The Redbook Index for the previous week will be revealed at 13:55 GMT. Previously, it was at 3%.
The October Existing Home Sales data is scheduled to be released at 15:00 GMT. The figure is expected to fall from 3.96 million to 3.9 million.
The US Treasury Department will hold a 10-year TIPS auction at 18:00 GMT.
The primary event for this Tuesday is the release of the Fed’s latest FOMC Minutes at 19:00 GMT.
Furthermore Equities are flat and looking for direction as Asian markets do not accept the risk on sentiment that came from the election. On Monday in the United States. Markets are anticipating Nvidia earnings, which will be released after the US closing bell.
According to the CME Group’s FedWatch Tool, markets are pricing in a 100% possibility. That the Federal Reserve will hold interest rates steady at its December meeting.
Moreover The benchmark 10-year US Treasury Note yield is currently trading at 4.40%, continuing its drop as demand for US paper remains strong. On Monday, the 20-year allocation was a huge success, with a bid-to-cover ratio of 2.58, well above the 2.4 norm.
