USD

Happy Fed Day to those who celebrate. Global risk assets are drifting lower, yields are a touch firmer, and the dollar is trading in the middle of its recent trading range as investors await what is widely expected to be a third consecutive “hawkish cut” from the Federal Reserve this afternoon. Data published yesterday showed US labour markets cooling, but not at an alarming rate. On the positive side of the ledger, the number of job openings surged to 7.67 million in October from 7.23 million in August, but this may have been driven by pre-holiday staffing increases. The hires...

Consolidative price action is taking place across financial markets this morning as risk appetite improves ahead of next week’s all-important Federal Reserve meeting. Benchmark ten-year Treasury yields are holding firm around the 4.11-percent handle, the dollar is trading sideways, and equity futures are setting for a continuation of an almost two week-long Santa Claus rally. Most major currencies are looking technically stretched against the dollar, with many trading beyond moving averages and Bollinger Band levels. The US economy is still delivering contradictory signals. Consumer sentiment, as measured by the Conference Board and the University of Michigan, continues to deteriorate even...