US dollar is trading at its highest level this week following US economic statistics.
The US Dollar (USD) rises in a double-whammy moment, with first US Federal Reserve member Michelle Bowman issuing hawkish remarks, stating that a rate drop is not in the cards, pointing to concerns of increased inflation. Not long later, proof is supplied as Canadian inflation jumps from 2.7% to 2.9%, compared to the projected 2.6%. Simultaneously, the US House Price Index increased from 0.0% to 0.2%.On the economic front, all eyes are now on Consumer Confidence, as Retail Sales last week indicated a very lethargic consumer in the United States. Additionally, two US Federal Reserve (Fed) members will address the stage and may comment on the current monetary policy stance. One item to note on the program is the first presidential debate on Thursday between current US President Joe Biden and former US President Donald Trump.
Daily Market movers: Markets are becoming blind again. The US Dollar index trades in the green and rises above 105.50.
The Chicago Fed National Activity Index for May was released at 12:30 GMT, with a reading of 0.18 up from -0.26 in April.
At 13:00 GMT, the Housing Price Index for April was announced. An increase of 0.3% was anticipated after growing by 0.1% in March, while the April figure was 0.2%, indicating that house prices are still rising overall.
The Conference Board Consumer Confidence Index and the Richmond Fed Manufacturing Index for June were both released at 14:00 GMT. Consumer confidence increased from 102.00 in May to 100.40 in June. The Richmond Manufacturing Index missed the 2.0 consensus and plummeted to -10 from zero earlier.
Bowman of the Federal Reserve makes some extremely hawkish remarks.
Two US Federal Reserve officials will take the stage.
Michelle Bowman, Federal Reserve Governor, spoke at the Policy Exchange UK event in London, United Kingdom. At 11:00 GMT, regarding US monetary policy and bank capital reform. She remained very hawkish, saying rises are still on the table if necessary, and there are There are too many risks of inflationary surprises.
At 16:00 GMT, Federal Reserve Governor Lisa Cook gives a lunchtime speech. At the Economic Club of New York on the US economic forecast.
To conclude the day, at 18:10 GMT, Bowman gives pre-recorded introductory remarks at the Midwest Cyber Workshop, presented by the Federal Reserve Banks of St. Louis, Chicago, and Kansas City.
European shares are expected to close in the deep red on Tuesday. While US equities are expected to close in the green, with the Dow Jones being an exception.
The CME Fedwatch Tool predicts a 25 basis point rate drop in September. With probability currently at 61.1%. A rate pause remains at a 32.3% chance. While a 50-basis-point rate drop has a modest 6.6% chance.
The US 10-year benchmark rate is currently 4.24%, having been relatively stable since the end of last week. The margin between the French and German 10-year benchmarks has declined from 0.79% to 0.74%. Dropping somewhat but still at its largest level in almost six years.
