US dollar extends its advances in the European session on Monday.
The US Dollar (USD) edged higher on Monday, extending gains for the second day in a row. After US Federal Reserve (Fed) Governor Christopher Waller failed to convince markets. That the September interest rate decrease will be 50 basis points. Instead, with the mixed Nonfarm Payrolls news on Friday, markets look to settle for merely a 25 basis point rate drop, implying that the Greenback been punished too much in recent weeks and needs to reclaim some ground to get a fair assessment.
Furthermore This week’s economic data contains three crucial points. The key mover on the US side will be the August US Consumer Price Index (CPI). Which will be released on Wednesday. On the European side, the European Central Bank will announce its interest rate decision on Thursday, ahead of the Federal Reserve’s decision next week. Meanwhile, former US President Donald Trump and Democratic contender Kamala Harris will debate on Wednesday, bringing the presidential contest back to the forefront.
Daily Market movers: Outlining Friday’s move. US Dollar Index rises above 101.50 and appears to be moving toward 101.90 for a test.
US Census Bureau will announce the US Wholesale Inventories for July. Which projected to Come in at 0.3%.
At 15:30 GMT, the US Treasury will hold an auction for short-term paper, including 3-month and 6-month bills.
Furthermore At 19:00 GMT, the Consumer Credit Change for July is likely to increase to $12.2 billion from $8.93 billion before.
Moreover Asian equities closed lower by an average of 1%. European and US shares are trending positively. With nearly all major European indices and US futures up 1%.
Moreover The CME Fedwatch Tool predicts a 73.0% chance of a 25 basis point (bps) interest rate drop by the Fed on September 18, against a 27.0% possibility of a 50 bps cut. For the meeting on November 7, another 25 basis points cut (assuming September is a 25 basis point cut) In November, rates are predicted to fall by 32.6%, with a 52.5% likelihood of falling 75 basis points (25 bps + 50 bps) and a 14.9% chance of falling 100 basis points (25 bps + 75 bps).
The US 10-year benchmark rate is trading at 3.74%, progressively rising throughout the day.
