US Dollar is trading flat after recovering at the end of the US session on Thursday.
The US Dollar (USD) is currently trading sideways on this final Friday of the year and the last trading day of 2023. In terms of overall performance this year, the Greenback has lost only about 3% Year-To-Date on the US Dollar Index (DXY) chart since its first introduction in January. The main question for 2024 appears to be whether markets have been overly optimistic. eager to pricing in US Federal Reserve rate reduction, or has the Fed lost control and made a policy error?
On the economic front, traders might scalp the final pips of profit with the release of the Chicago Purchase Managers Index (PMI) on Friday. The DXY has already had a minor correction as a result of Thursday’s Jobless Claims data. If this Friday’s PMI data remain above 50 and perhaps exceed expectations, the US currency could recoup some of its previous losses this week.
Daily Market Movers: US Dollar (USD) is currently trading sideways on this final Friday of the year.
The Chicago Purchase Managers Index prints the final data point for 2023 about 14:45 GMT. A drop from 55.8 to 51 is expected. A decrease below 50 indicates contraction and will be very US Dollar negative, whilst either a beat or a print above the prior may result in a very strong US Dollar surge.
On the geopolitical stage, Russia has launched a fresh missile strike on Ukraine, bombarding numerous strategic cities and increasing deaths by the hour.
Former US President Donald Trump will be placed back on the Colorado primary ballot, despite he is forbidden from running in the March primaries in the US state of Maine.
Equities are prolonging the Christmas joy by attempting to eke out the last percentage points of gains.
Japan has officially closed off for this year, with the Topix closing near 28% for 2023. The Topix was only recently closed. above 25% for 2023.
In China, the Hang Seng Index was a bit of a letdown for 2023, closing down 13.82% for the year.
The German Dax is currently up more than 0.25% for this Friday, with a great 20% return for 2023.
Futures in the United States are all in the green for this Friday. Extending the Christmas surge into the New Year. Overall for 2023, the Dow Jones is near 13% in the green. The S&P 500 is around 25% profit, and the Nasdaq is near 44% gain.
According to the CME Group’s FedWatch Tool, markets are pricing in an 83.5% possibility. That the Federal Reserve will hold interest rates steady at its January 31 meeting. Around 16.5% believe the first cut has already occurred.
The benchmark 10-year US Treasury Note is trading near 3.84%, off the lows. And has had a bit of an upside squeeze since Thursday.
