US Dollar rises as investors become less interested in risky assets
Tuesday morning in Europe sees the US Dollar (USD) trading mostly stable and up against the majority of G20 currencies. Even yet, the Greenback is weakening somewhat as US equities markets resumed a robust risk-on tone on Monday, as indicated by the DXY US Dollar Index. Tuesday’s atmosphere was dominated by Asian stocks, as the Japanese Nikkei Index closed at a record 34-year high.
US Trade Balance figures will be viewed by traders.
Tuesday has another light agenda with only second-tier data releases on the economic front. There will be traders watching for Michael Barr, the vice chairman of the Federal Reserve, to talk later on Tuesday. Prior to the release of the US Consumer Price Index (CPI) report on Thursday, there aren’t any significant catalysts scheduled.
Daily market movers: US Dollar rise as stock decline.
At 11:00 GMT on December 1, the National Federation of Independent Business (NFIB) announced its Business Optimism Index. December’s number was 91.9, compared to November’s 90.6.
Mário Centeno, a member of the European Central Bank (ECB), stated that the ECB does not have to wait until May to decide on interest rates because December inflation is seen as extremely positive news in the fight against inflation. Because of this, the Euro depreciates in relation to the US Dollar (EUR/USD). remarks that are dovish.
The US Trade Balance figures for November will be made public at 13:30 GMT:
In October, the US Goods Trade Balance showed a $90.3 billion deficit; no estimate for November has been made.
It is anticipated that the US goods and services trade imbalance for November will increase somewhat from $64.3 billion in October to $65 billion.
At 13:55 GMT, the US Redbook for the first week of January will be made available. Prior to that, it was 5.6% with no prediction.
About 7:00 GMT, Michael Barr, the Vice Chairman of the Fed, is scheduled to speak.
At approximately 18:00 GMT, the US Treasury will be making its way to the markets to release a 3-year note.
Tuesday’s equity markets are erratic. Asian markets are rising following The Nikkei closed on Tuesday at a level not seen in 34 years. Halfway through the session, European stocks are searching for direction, while US market futures are down.5%.
Markets are pricing in a 95.3% possibility that the Federal Reserve will maintain interest rates at its meeting on January 31, according to the CME Group’s FedWatch Tool. Approximately 4.7% anticipate the first cut to occur already.
The benchmark 10-year US Treasury Note is now trading at about 4%, but banks and investors are calling for the 4% to be reduced.
