US dollar recovers above a critical level ahead of the Fed meeting.
The US Dollar (USD) is set to face its first major event of 2024. The US Federal Reserve’s January rate announcement. All eyes will be on Federal Reserve Chairman Jerome Powell. And the message he will send to the markets. Although no rate adjustments are expected, Powell’s tone of his statement could be either hawkish or dovish, dampening hopes for a swift rate decrease even further. with a price adjustment for the (stronger) US dollar.
Traders were shocked by the positive JOLTS statistics, which showed that job opportunities remained elevated.
On the economic front, a great cuisine awaits the main event coming Wednesday evening. Traders will have the opportunity to review the privately prepared ADP Employment Change data before the official US jobs report on Friday. Moreover The Chicago Purchasing Managers’ Index for January is also set to be announced, with traders looking for confirmation that the number has risen out of contraction zone (over 50), as the PMI did last week. Such a maneuver would aid to confirm the recovery and smooth landing.
Daily Market movers: Tensions rise
The Mortgage Bankers Association (MBA) is scheduled to reveal its weekly number of mortgage applications at 12:00 GMT. The previous figure was 3.7%.
Moreover At 13:15, the ADP Employment Change data is likely to be released. The previous figure stood at 164,000, with 145,000 projected.
Further The fourth-quarter Employment Index is scheduled to be announced around 13:30. The previous figure was 1.1%, and 1.0% is projected for now.
Moreover At 14:45, the Chicago Purchase Managers Index (PMI) for January will be released. The last result indicated shrinkage of 46.9. With 48 anticipated this time. Any figure more than 50 would indicate growth.
The Federal Open Market Committee (FOMC) is scheduled to announce its first rate decision for 2024:
At 19:00 GMT, the Fed will issue a joint written statement outlining its rate decision.
Furthermore Around 19:30, US Fed Chairman Jerome Powell will take the stage. And go into detail on how the The Fed perceives current conditions in the United States.
Although no rate move is expected, the meeting might have a hawkish or dovish tone. Sending the Greenback higher or lower in the US Dollar Index.
AMD and Alphabet missed results, sending equity markets lower.
AMD and Alphabet missed results, sending equity markets lower. With the Chinese Manufacturing PMI falling short of forecasts. Risk appetite appears to be quite low on Wednesday.
Moreover According to the CME Group’s FedWatch Tool. Markets are pricing in a 97.9% chance of an unchanged interest rate decision this Wednesday evening. With a minuscule 2.1% chance of a drop.
The benchmark 10-year US Treasury Note trades at around 4.01%. The lowest level this week ahead of the Fed rate decision.
