The USD is modestly changed vs the major currencies to start the US session and the new trading week. In the video, I take a look at the 3 major currency pairs - the EURUSD, USDJPY and GBPUSD - from a technical perspective.
This week the expectations is for a 25 basis point cut from the Fed on Wednesday, with many thinking it will be a hawkish cut as the Fed moves toward neutral. The Fed cut 100 basis points in 2024 and have cut 50 - soon to be 75 basis points in 2025. Inflation remains above the 2% target but has seemed to have steadied. The employment data is somewhat mixed with ADP showing weakness while the initial jobless claims showing strength or at least a "no hire/no fire" economy.
In other markets, US stocks are trading marginally higher after gains last week:
- 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 US debt market, yields are higher:
- 2-year yield 3.579%, +1.5 basis points
- 5 year yield 3.730%, +1.6 basis points
- 10 year yield 4.150%, +1.2 basis points
- 30 year yield 4.801%, +1.0 basis points
