US dollar fell slightly on Monday after failing to break Friday’s peak.
The US Dollar (USD) is facing a “pop quiz” moment before traders can enjoy a bank holiday this week. As many trading desks and markets around the world close on Good Friday.
Traders anticipate a volatile business week, culminating in a bank holiday on Friday.
Traders will most certainly continue to speculate on whether the Fed’s thesis of three cuts for this year is still viable. With a few noteworthy leading economic indicators and US GDP figures at hand. As if that weren’t enough, on Good Friday (with limited liquidity and most markets closed). The US will release the Fed’s preferred inflation gauge: the February Personal Consumption Expenditures (PCE) Price Index.
On the economic data front, Monday marks a quiet start to the trading week. With only US New Home Sales to trade on. Lisa Cook, a member of the Federal Reserve’s Board of Governors, Chicago Fed President Austan Goolsbee, and Atlanta Fed Raphael Bostic are also scheduled to appear. The US Treasury will be particularly active in the bond market on Monday, with three bond auctions scheduled.
Daily Market movers: Asia has a hangover.
The People’s Bank of China (PBoC) fixed the Yuan significantly stronger versus the US Dollar, resulting in a lower USD/CNH, putting the Greenback on the back foot.
The release of minutes from the most recent Bank of Japan meeting caused shares in Japan to plummet, as the records indicated that the BoJ is considering raising interest rates more than expected.
At 14:00 GMT on Monday, new home sales figures for February will be released. In January, revenues increased by 1.5 percent.
Three Fed speakers are scheduled for this Monday:
Atlanta Fed President Raphael Bostic will talk at 12:25 GMT.
Austan Goolsbee, President of the Chicago Fed, will talk at approximately 13:05 GMT.
Lisa Cook, a US Fed Board member, will talk about 14:30 GMT. .
The US Treasury is slated to allot three new bond issuances on Monday:
A three-month and six-month bill about 15:30 GMT.
The US Dollar Index remains steady in the mid-104.00 range ahead of GDP and PCE reports.
A two-year note is likely to be issued at 17:00 GMT.
On Monday, equities fell significantly. Asia’s markets are down, headed by Japan’s Nikkei, which closed more than 1% lower. Europe is following suit, with negative openings for the Stoxx 50 and the German Dax, while US Futures are broadly flat.
According to the CME Group’s FedWatch Tool, the Fed’s May 1 meeting is expected to maintain the fed funds rate steady by 89.2%, with a 10.8% possibility of a rate drop.
The benchmark 10-year US Treasury Note trades about 4.21% at the lower end of this week.
