US dollar ranges after more easing throughout the European session.
The US Dollar (USD) launched with a bang at the start of the week, fueled by Dollar bulls looking to buy the Greenback as a safe haven. Following the shooting of former US President Donald Trump at an election rally. Trump was hurt in the ear but is recovering nicely. He is scheduled to give a speech later this Monday. The incidents caused the bond market to soar, alongside Trump’s popularity Set to rise now, surpassing current US President Joe Biden.
On the economic front, expect this week’s data points to be overshadowed by news from the weekend and rallies. Particularly those attended by Trump. Aside from that, the week gets off to a slow start, with US Retail Sales data for June. Which is due for Tuesday, taking the spotlight. Jerome Powell, Chairman of the US Federal Reserve (Fed), will be interviewed by David Rubenstein on Bloomberg later on Monday.
Daily Market movers: Milwaukee at the center of attention.The US Dollar index rises, on track to close the gap.
Markets are attempting to value the events that occurred over the weekend. Bond markets are selling off with higher yields, a similar movement we experienced a few Former US President Donald Trump rose to the top of the polls few weeks ago. Bond markets are concerned about Trump’s spending plans. Which might increase the US deficit to levels never seen before in US history. Investors are selling off their US debt with the expectation that it will devalue or, in the worst-case scenario, never be repaid.
Former US President Donald Trump is due to address at the Republican National Convention in Milwaukee on Monday.
The NY Empire State Manufacturing Index for July was announced at 12:30 GMT, with minimal change from -6 to -6.6.
At 20:35 GMT, Federal Reserve Bank of San Francisco President Mary Daly takes part in the “Fortune Brainstorm Tech 2024” session “The Bull, the Bear, “The Banker” with Fortune’s Emma Hinchliffe in Utah, USA.
David Rubenstein will interview US Federal Reserve Chairman Jerome Powell at the Economic Club of Washington, D.C.
On Monday, the equity markets are quite binary. Asian and European shares are down, but US futures are up.
The CME Fedwatch Tool is widely supportive of a rate drop in September. The probability of a 25-basis-point decrease are now 89.9%. A rate halt is a 5.7% chance, while a 50-basis-point rate drop has a slim 4.4% chance.
After trading higher at the Asian opening, the US 10-year benchmark rate is now at 4.21%. Bond markets are falling on the prospect of Trump winning the US presidential election.
