US Dollar is trading in the green across the board, with US markets poised to open this week.
The US Dollar (USD) is breaking eggs on Tuesday, as markets await the results of the first Caucus election for the Republican Party (GOP) nominee who will face Joe Biden in the presidential runoff later this year. Former President Donald Trump won by a landslide margin of nearly 51%. Iowa is significant because, in the past, Trump has won there. In prior campaigns, he was unable to gain the backing of the state.
Traders are purchasing the greenback after Trump’s triumph in Iowa.
This outcome might ensure that Trump wins landslide victories in additional states where he already has enough votes and supports to become the GOP’s sole nominee. Meanwhile, traders are bracing for a speech by US Federal Reserve member of the Board of Directors Christopher Waller, which is scheduled for later this Tuesday. His dovish statements in November had a significant impact on the markets, resulting in significant US Dollar weakening throughout December.
Daily market movers: It’s Monday in the US.
The World Economic Forum in Davos is into its second day, with important figures – central bankers and leaders – delivering comments, declarations, and giving interviews.
It has a fairly light US calendar, with the New York Empire State Manufacturing Index coming around 13:30 GMT. The prior figure was -14.5, with a -5 contraction projected in January.
Near 15:30, the US Treasury will enter the short-term funding market to allot a 3-month and 6-month bill tender.
Furthermore The US Fed’s Waller is scheduled to talk near 16:00 on Tuesday. If he becomes more hawkish and reverses his prior November statement, the US Dollar might rise more.
The Hong Kong Hang Seng Index has dropped more than 2%, indicating that equity markets are in a foul mood. European shares are down over 1%, while US futures are set to open higher. on the downside by half a percent.
Moreover According to the CME Group’s FedWatch Tool, markets are pricing in a 95.3% chance of the Federal Reserve keeping interest rates steady at its meeting on January 31. Around 4.7% anticipate the first cut already taking place. The return to 95.3% unaltered is consistent with the US yield rising a few basis points.
The benchmark 10-year US Treasury Note rose to 3.99% when bond trading resumed in Asia on Tuesday morning.
