US dollar is trading lower on Monday ahead of the US opening bell.
The US Dollar (USD) sees traders returning to trading and betting that the US Federal Reserve would decrease interest rates sooner than expected, contrary to last week’s attitude. The US Jobs Reports disappointed expectations, but the data was not awful, as the Nonfarm Payrolls Change and Unemployment Rate indicated that labor market conditions remained favorable. The coming week will be light in terms major economic data releases, but Federal Reserve speakers will return to the stage, and their interest-rate forecast could influence the US Dollar.
On Monday, the Fed will release the Senior Loan Officer Survey (SLOOS), which examines 80 large domestic banks and 24 branches of international banks to assess current credit and lending conditions. The report may have an impact on choices to set interest and discount rates. Prior to the SLOOS publication, Federal Reserve Bank of New York President John Williams will participate in a Q&A session in California, as will Thomas Barkin of the Federal Reserve Bank of Richmond.
Daily Market movers: US dollar loses ground against the Chinese Yuan and the Japanese Yen.
The Japanese Yen and the Chinese The yuan was down roughly 0.50% against the greenback on the day, but attitude is shifting ahead of the US morning bell, and the greenback is fading.
Over the weekend, Israel’s Prime Minister Benjamin Netanyahu stated that Israel is ready to a truce to swap captives, but he opposed Hamas’ call for a permanent ceasefire, according to Bloomberg. Meanwhile, several international leaders condemned Israel’s recent attacks on Rafah, where several residents have fled from other targeted cities in the region.
The US Treasury is returning to the markets to auction three-month and six-month bills around 15:30 GMT.
Around 17:00 GMT, Federal Reserve Bank of New York President John Williams will participate in a Q&A session in California. Broadly At the same time, Richmond Fed President Thomas Barkin will give a speech.
At approximately 18:00 GMT, the Fed will disclose its most current Senior Loan Officer Survey (SLOOS) results.
Asian stocks are in the green, with the Shanghai-Shenzhen CSI 300 up more than 1.5%. European indexes and US market futures have taken over the optimistic mood, with an average 0.50% increase.
The CME Fedwatch Tool predicts that the Federal Reserve’s fed fund rate will remain unchanged in June, with a 91.8% chance. Rate cuts are likewise unlikely in July, with a 49.9% chance that rates will be 25 basis points lower in September than they are now.
The benchmark 10 year US Treasury Note trades around 4.47% and dropped out of bed earlier in the Asian-Pacific (APAC) session, dipping to 4.44%.
