Incoming US data to keep the pressure on the USD – DBS

Source Fxstreet

The DXY Index depreciated by 0.5% to 98.9 overnight after failing to push above 100 in the past three sessions. The Fed has entered a blackout period ahead of next week’s FOMC meeting. Expect US President Donald Trump to complain about Fed Chair Jerome Powell again when the committee maintains rates at 4.50% for the third consecutive meeting. Trump’s inability to refrain from interference was evident in his call for Canadians to vote for the '51st State' during their federal election on April 28, DBS' FX analyst Philip Wee reports.

DXY retreats from 100

"Today, consensus will likely be wrong-footed in expecting the US trade deficit to narrow to USD145bn in March from USD147.8bn in February. The Atlanta GDPNow model only started predicting in March that US GDP could contract in 1Q25 from a frontloading of imports to beat Trump’s tariff announcement on Liberation Day (April 3). The same could be said for tomorrow’s advance estimate for 1Q25 GDP growth, which consensus expects will still be positive at an annualized 0.3% QoQ saar vs. 2.4% in 4Q24."

"The expectation for today’s US Conference Board consumer confidence index to decline to 88 in April from 92.9 in February should align with the shocking stock market sell-off triggered by Trump’s tariffs. Expect consumers to worry more about emptying supermarket shelves raising prices and mortified businesses slowing investment and hiring plans. Friday’s nonfarm payrolls are expected to slow to 134k in April from 228k in March. However, consensus sees tomorrow’s PCE inflation slowing to 2.2% YoY in March from 2.5% in February, as businesses have not yet factored in the larger-than-expected tariffs announced on Liberation Day." 

"US Treasury Secretary Scott Bessent wants to push the bill to extend Trump’s 2017 Tax Cuts and Jobs Act (TCJA) by Independence Day (July 4). He may announce a new X-date by the end of this week or next week and advocate increasing the federal debt ceiling by USD 4-5 trillion. The Congressional Budget Office has estimated that the Treasury could exhaust its borrowing authority around August-September, while the Bipartisan Policy Centre estimated a broader window between mid-July and early October."

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
US Sept. PCE Preview: Inflation May Heat Up Again, How Will US Stocks, the Dollar, and Gold React?This Thursday (October 29), the US will release the September Personal Consumption Expenditures (PCE) price index. However, since the PCE report will be released after the Federal Reserve
Author  TradingKey
7 hours ago
This Thursday (October 29), the US will release the September Personal Consumption Expenditures (PCE) price index. However, since the PCE report will be released after the Federal Reserve
placeholder
Brent's $115 front month sits $4.6 above January — the $14 spread to WTI is the supply-risk premiumDecember Brent trades at $115.29 while January is $110.71, a $4.58 backwardation. The December Brent-WTI spread is $14.2, versus a $3-5 normal. That gap, not the headline, is where the Middle East supply risk is priced. Here is what the curve says, why the December contract's expiry on October 30 will mechanically cut the headline by $4.6, and the 108.81 neckline that decides the next move.
Author  Irene Q.
11 hours ago
December Brent trades at $115.29 while January is $110.71, a $4.58 backwardation. The December Brent-WTI spread is $14.2, versus a $3-5 normal. That gap, not the headline, is where the Middle East supply risk is priced. Here is what the curve says, why the December contract's expiry on October 30 will mechanically cut the headline by $4.6, and the 108.81 neckline that decides the next move.
placeholder
Bitcoin is back above $80,000 — but 75% of the bounce was shorts, not buyersBitcoin trades at $80,669, back above the $80,000 line after touching $79,145 on October 24. But 75.4% of the last 24 hours of futures liquidations were shorts, CME open interest fell 36,545 BTC in October, and spot ETFs lost $773.5 million on October 22-23. Price is up; positioning is down. Here is why the bounce is a squeeze, and the four things that would make it real.
Author  Suzie
11 hours ago
Bitcoin trades at $80,669, back above the $80,000 line after touching $79,145 on October 24. But 75.4% of the last 24 hours of futures liquidations were shorts, CME open interest fell 36,545 BTC in October, and spot ETFs lost $773.5 million on October 22-23. Price is up; positioning is down. Here is why the bounce is a squeeze, and the four things that would make it real.
placeholder
Gold rises above $4,050 ahead of Fed rate decisionGold price (XAU/USD) jumps to around $4,065 during the early Asian session on Wednesday, bolstered by lower oil prices. Traders await the Federal Reserve's (Fed) policy meeting later on Wednesday for signals on ‌the future path of US interest rates.
Author  FXStreet
16 hours ago
Gold price (XAU/USD) jumps to around $4,065 during the early Asian session on Wednesday, bolstered by lower oil prices. Traders await the Federal Reserve's (Fed) policy meeting later on Wednesday for signals on ‌the future path of US interest rates.
placeholder
Fed October Rate Decision Preview: Rate Hike Pause Has Become Consensus, How Will US Stocks, Dollar, and Gold React?The Federal Reserve will announce its October interest rate decision at 14:00 Eastern Time on October 28, and Fed Chair Warsh will hold a press conference at 14:30. Markets currently wide
Author  TradingKey
Yesterday 10: 21
The Federal Reserve will announce its October interest rate decision at 14:00 Eastern Time on October 28, and Fed Chair Warsh will hold a press conference at 14:30. Markets currently wide
Related Instrument
goTop
quote