The Federal Open Market Committee (FOMC) meeting is scheduled to hold next week Wednesday, and the USD has continued to soar higher in value. It is reaching historical peaks in the global market.
A rail strike was prevented in the US following the deal struck with unions. Another supply chain blockage potentially undermined an economy that was already encountering headwinds of its monetary policy.
The treasury yield curve experienced an inversion similar to the curve inversion of the tech wreck in 2000 as the treasury yield continues to climb further today, causing a further inversion in the curve. The closely watched 2s 10s at -0.44% as it approaches last month’s low of -0.51%.
The British Pound (GBP/USD) is approaching the 37-year low seen in the previous week, although the Canadian Dollar (USD/CAD) made a 2-year increase in early Asian trade at 1.3252. It is close to that level at the time of going to print.
Despite the People’s Bank of China’s (PBOC) attempt to fix the onshore Yuan at a stronger than anticipated rate of 6.9305, the onshore Yuan (USD/CNY) is trading above 7 today. The offshore rate (USD/CNH) galloped past 7 yesterday to make a high today of 7.0349.
Gold continues to diminish close to yesterday’s 2-year low, viewed at US$ 1,660 per ounce.
After a selloff yesterday, Crude oil has struggled through the Asian session and seems to be eyeing off last week’s low. The WTI futures agreement is near US$ 85.30 bbl, while the Brent contract is a touch above US$ 91 bbl.
Futures are pointing toward another tough day for European and US stocks, as the APAC equities are again in a sea of red due to the weak lead from Wall Street.
Christine Lagarde, the President of ECB, and some other ECB speakers will be speaking today. The US will see some consumer sentiment numbers after UK retail sales and EU CPI data,