US dollar falls as traders fear the implications of USDJPY reaching 160.00.
The US Dollar (USD) fell in the European trading session on Monday, with concerns about Europe’s political woes receding before of Sunday’s first round of French elections. This means that some of the safe-haven’s fading is reflected in the Greenback. However, some counterweight comes from the Japanese yen (JPY). Which is weakening further versus the greenback and has the 160.00 mark. In reach, where Japan’s Ministry of Finance previously intervened.
On the economic front, the week begins with some lighter numbers. Such as the Chicago Fed Activity Index for May and the Dallas Fed Manufacturing Business Index for June. Aside from that, the US Treasury is returning to the markets to issue some US debt. And US Federal Reserve Bank of San Francisco President Mary Daly will make some remarks on Monday.
Daily Market movers: Goolsbee is pleased with inflation. US Dollar index is down 0.25% as the European session comes to a close.
Austan Goolsbee, President of the Chicago Fed, stated on CNBC. That he is hopeful and certain that the following data points would support inflation softening.
The onshore Yuan weaken near 2%, which is the maximum bandwidth of the People’s Bank The People’s Bank of China (PBoC) enables its currency to trade against the US dollar on its onshore market.
At 14:30 GMT, the Dallas Fed Manufacturing Business Index for June will be released. The last print was -19.4, with no forecast given.
The US Treasury will auction a 3-month and 6-month bill at 15:30 GMT.
At 18:00 GMT, Federal Reserve Bank of San Francisco President Mary Daly delivers remarks and engages in a Q&A session with Deidre Bosa, CNBC’s “TechCheck” anchor.
Equities are not breaking any pots on Monday, with only tiny gains and losses on the quote board. There were no significant outliers to report during the European trading session.
The CME Fedwatch Tool predicts a rate drop in September, with The odds now remain at 59.5% for a 25 basis point cut. A rate pause is 34.1% likely, while a 50-basis-point rate drop is a remote 6.4% likelihood.
The US 10-year benchmark rate is currently trading at 4.27%, having been relatively stable since the end of last week.
