US dollar bounces back from Tuesday’s turbulence.
US dollar index continues to seek support from which to recover as it trades higher in the 106.50 range as market sentiment shifts toward risk-taking ahead of Nvidia’s earnings release following the US closing bell, the US dollar (USD) bounces back on Wednesday, with the DXY Index trading at about 106.5. Following Russian President Vladimir Putin’s declaration that he is amenable to a peace agreement mediated by President-elect Donald Trump, markets in the US overnight reversed their initial worries about the worsening situation between Russia and Ukraine.
Wednesday’s US economic calendar still largely empty, with the exception of regarding the weekly data on mortgage applications. Four Fed speakers scheduled to provide market commentary as the attention turns to the Fed. Traders are uncertain if the Fed will follow through on its earlier pledge to lower interest rates in December, so that December cut is still in limbo.
Russian President Vladimir Putin’s confirmation that he would be amenable to a ceasefire discussion with President-elect Donald Trump.
Following Russian President Vladimir Putin’s confirmation that he would be amenable to a ceasefire discussion with President-elect Donald Trump, geopolitical headlines about Russia and Ukraine suggest that tensions are beginning to ease, according to Reuters.
The weekly Mortgage Applications were published by the Mortgage Bankers Association (MBA) at 12:00 GMT. Compared to last week’s figures, which increased by 0.5%, this week’s figures came in at 1.7%.
At around 15:00 GMT, the Vice Chair for Supervision In Washington, DC, Michael Barr gave testimony before the House Financial Services Committee regarding the supervision of prudential regulators.
At 16:00 GMT, Federal Reserve Governor Lisa Cook speaks at the University of Virginia Department of Economics in Charlottesville, Virginia, regarding the US economy and monetary policy.
“Approach to agency policymaking” is the topic of Federal Reserve Governor Michelle Bowman’s speech at the Forum Club of the Palm Beaches in West Palm Beach, Florida, at 17.15 GMT.
Susan Collins, president of the Federal Reserve Bank of Boston, speaks and engages in discussion at a Ford School event in Ann Arbor, Michigan, at 21:00 GMT.
After overcoming the negative impact of Tuesday’s geopolitical headlines, stocks are now in good vibes prior to Nvidia’s earnings announcement following the US closing bell. US equity futures are rising in tandem with European stocks.
A further 25 basis point (bps) rate cut by the Fed at its December 18 meeting is priced in by 59.1% by the CME FedWatch Tool. The odds of rates staying the same are 40.9%. Traders have drastically reduced some of their rate-cut bets compared to a week ago, even though the rate-cut scenario is the most likely.
The US 10-year benchmark rate is currently trading at 4.42%, further depreciating from Friday’s high of 4.50%.
