The minutes of the latest FOMC meeting show that a solid majority expects to make 2 more rate hikes of 0.25% each before the terminal rate is reached in this rate cycle.
➡️ Stock markets are lower on deteriorating risk sentiment, with the FOMC meeting minutes released yesterday appearing to have limited impact. Most global stock markets are trading lower, especially in Asia, where the Hang Seng Index is down more than 2.5% and the Nikkei 225 Index is down more than 1.5% on the day.
➡️ The U.S. 10-year Treasury yield hit its highest level since March when treasuries were sold, with the yield inverted between yesterday's 2-year and 10-year yields reaching its highest level in decades, which is typically a Bearish market signal, despite the strongly stock market bullish trend we have now in the United States.
➡️ Bitcoin closed again yesterday below what appears to be a very crucial round number at $31k, with the price action now looking more uncertain, suggesting a bullish breakout may not occur.
➡️ The Japanese yen remains the weakest major currency in the long term. Friday saw the USD/JPY currency pair make a new 7-month high above 145 yen, but it is now stuck below that level as the threat of intervention by the Bank of Japan to push the rate lower remains . Trend traders will remain interested in holding against the Japanese yen, which also hit a multi-year low on Friday against the euro.
➡️ In the Forex market, the Japanese yen was the strongest major currency of the Asian session, while the euro was the weakest. The US dollar continues to rise today after last week's rally, with the dollar index starting to suggest that it may soon establish a new long-term uptrend technically, but its chart pattern is still strongly indicative of consolidation.
➡️ OPEC will continue its series of meetings today.
➡️ Today there will be a release of a variety of US economic data, including ADP Nonfarm Payrolls Forecast (expected to add 226K net new jobs), JOLTS Job Openings, Unemployment Claims and ISM services PMI data.
Credit by DailyForex.com