UPDATE: The USD remains largely unchanged as the new trading week begins, with traders closely watching for upcoming Federal Reserve announcements. As the US session opens, the focus turns to a potential 25 basis point cut expected this Wednesday, which could signal a shift toward a more neutral monetary policy.
In the latest market movements, the USD is steady against major currencies. Analysts are particularly focused on the EURUSD, USDJPY, and GBPUSD pairs from a technical standpoint. The Fed cut rates by 100 basis points in 2024 and is poised to reduce them by 50, possibly 75 basis points in 2025, as inflation stabilizes above the targeted 2%.
The employment landscape shows mixed signals. The recent ADP report points to weaknesses, while initial jobless claims suggest a resilient economy, indicating a “no hire/no fire” scenario.
Meanwhile, US stock markets are trading marginally higher, continuing last week’s gains. As of now:
- Dow industrial average is up 10.01 points
- S&P index is up 9.85 points
- NASDAQ index is up 77.20 points
In the debt market, yields have seen an uptick:
- 2-year yield: 3.579%, up 1.5 basis points
- 5-year yield: 3.730%, up 1.6 basis points
- 10-year yield: 4.150%, up 1.2 basis points
- 30-year yield: 4.801%, up 1.0 basis points
As the Federal Reserve prepares for its meeting, all eyes are on potential policy changes that could impact financial markets and the economy. Stay tuned for further updates on this developing situation.
