US dollar held steady on Monday, but remained elevated near last week’s peak.
US Dollar (USD) is trading steady to sideways on Monday, with the US Dollar Index (DXY), which measures the Greenback’s value versus six major currencies, lingering around 102.50. While traders bracing for the US Federal Reserve’s (Fed) minutes and the US Consumer Price Index (CPI) release for September later this week, no less than four Fed speakers are lined up to advise Markets are anticipating November’s rate decision on Monday.
The economic calendar quiet on Monday, with only the August Consumer Credit Change to report. Later this week. The US CPI on Thursday will be the primary mover of the US dollar. Markets still debating whether the US economy is in a soft landing, a Goldilocks scenario, or a recession outlook.
Daily digest market movers: US Dollar Index trades above 102.00, with traders debating whether to push the DXY to 103.00.
There is no agreement or approval from US President Joe Biden on Israel’s plans to attack Iranian oil fields. The Biden administration did not issue a categorical denial, but on Friday, President Biden told Bloomberg that he would consider alternatives to striking oil fields.
Consumer credit change for August scheduled around 19:00 GMT, with a dip expected to $12 billion from $25.45 billion in July.
Moreover Four Federal Reserve speakers are scheduled to talk on Monday:
At 17:00 GMT, Federal Reserve Governor Michelle Bowman takes part in a fireside talk regarding banking regulation at the Independent Bankers Association of Texas (IBAT) annual convention in San Antonio, Texas.
Near 17:50 GMT, Federal Reserve Bank of Minneapolis President Neel Kashkari takes part in a Q&A and moderated discussion at the Bank Holding Company Association’s (BHCA) Fall Seminar in Edina, Minnesota.
Atlanta Fed’s Leading Voice series, Federal Reserve Bank of Atlanta President Raphael Bostic will conduct a debate about the business of professional spots at 22:00 GMT.
As part of the Atlanta Fed’s Leading Voice series, Federal Reserve Bank of Atlanta President Raphael Bostic will conduct a debate about the business of professional spots at 22:00 GMT.
Furthermore Closing off Alberto Musalem, President of the Federal Reserve Bank of St. Louis, will speak about the US economy and monetary policy at a Money Marketeers event at New York University on Monday, about 22:30 GMT.
European markets are struggling on Monday, with equity indices falling, while US futures are looking even more lethargic, with daily losses of approximately 0.50% on average.
The CME Fedwatch Tool forecasts a 93.1% chance of a 25 basis point (bps) interest rate drop at the upcoming Fed meeting on November 7, with 6.9% expecting no cut. Chances of a 50 basis point rate drop already totally priced out.
The US 10-year benchmark rate is trading at 3.99%, a 30-day high, and is on the verge of breaking above 4.00%.
