Capital markets remain haunted by concerns that the Fed has cut rates too slowly, increasing the likelihood of a U.S. recession.
➡️ Fears remain in the markets that the US is approaching an economic recession. However, the yields on the 2-year and 10-year US Treasury bonds have risen quite sharply and the major US stock indices are rising on the after-hours futures exchanges.. In Asia, stock markets are much more bearish, with the HSI down nearly 2% on the day.
➡️ In the Forex market, the Canadian dollar was the strongest major currency since the opening in Tokyo today, while the Swiss franc was the weakest. There are valid long-term trends against the US dollar in the USD/JPY currency pair and in the EUR/USD currency pair , although the latter seems more doubtful. The last few hours have shown a small recovery of the US dollar.
➡️ Nonfarm payrolls data on Friday came in significantly lower than expected, which sent the US dollar sharply lower., raising expectations for Fed rate cuts in the near term. The Fed is expected to cut its federal funds rate by a total of 1% in increments through the end of 2024.
➡️ Most commodities, especially soft ones, look weak. However, They remains relatively bullish, as it is trading only about 1 day's average range below its all-time high above $ 2,500.
Credit by DailyForex.com