Dollar Rallies as Treasury Yields Surge With Trump's Election Prospects
| Action Insight Daily Report 7-2-24 |
Dollar Rallies as Treasury Yields Surge With Trump's Election Prospects |
Dollar surged across the board overnight and stayed firm in Asian session, fueled by the strong rally in benchmark US Treasury yields. This rally is partly attributed to rising expectations of a Donald Trump victory in the upcoming presidential election. Analysts suggest that a Trump win would likely lead to heightened tariffs and expanded fiscal policies, both of which could stimulate inflation. Trump's performance in the recent debate against President Joe Biden has boosted these expectations, prompting some economists to recommend hedging against inflation as a precautionary measure. Conversely, Kiwi faced substantial selling pressure following release of sharply deteriorated business confidence report for Q2. RBNZ had projected the timing for the first rate cut to be in Q3 next year, but the worsening business confidence and economic outlook have led some analysts to speculate that this cut could be brought forward to as early as Q1. There is even speculation that the first rate cut might occur as soon as Q4 of this year... |
USD/CHF Daily Outlook Daily Pivots: (S1) 0.8986; (P) 0.9016; (R1) 0.9057; More… Intraday bias in USD/CHF remains on the upside for the moment. Fall from 0.9223 might have completed as a three-wave corrective move to 0.8825. Sustained trading above the near term falling channel resistance will bring further rally to 0.9157 resistance next. On the downside, below 0.8977 minor support will turn intraday bias neutral gain first. | |
| GMT | Ccy | Events | Actual | Forecast | Previous | Revised |
|---|
| 22:45 | NZD | Building Permits M/M May | -1.70% | -1.90% | -2.10% | | 01:30 | AUD | RBA Meeting Minutes | | 09:00 | EUR | Eurozone Unemployment Rate May | 6.40% | 6.40% | | 09:00 | EUR | Eurozone CPI Y/Y Jun P | 2.50% | 2.60% | | 09:00 | EUR | Eurozone CPI Core Y/Y Jun P | 2.80% | 2.90% | | 13:30 | CAD | Manufacturing PMI Jun | 50.2 | 49.3 |
|
|
|
