US Dollar sidelined with US markets closed

June 19, 2024

NEW YORK (June 19) The US Dollar (USD) trades flat on Wednesday, with US markets closed in observance of Juneteenth. US bond markets are closed and US equities will only see the futures markets moving. Traders will be able to let the dust settle after the downbeat Retail Sales report for May, released on Tuesday. 

On the US economic data front, there are two data points to digest on a very light trading day. The Mortgage Bankers Association will release its Mortgage Applications number for the week of June 14. The number has some importance because it was in contraction for a few weeks in a row until the previous week was a staggering 15.6% uptick. 

Daily digest market movers: A day off ahead

  • Although US markets are closed on Wednesday, there are some key headlines to report:
    • Japan's opposition front asked Japanese Prime Minister Fumio Kishida to call for snap elections, Bloomberg reported.
    • The US has given the green light for an arms deal with Taiwan, triggering fury with China on the matter, Baha news reported. 
    • France, Italy, Belgium, and five other European countries are set to be reprimanded and fined for their deficits breaching EU finance rules, according to Bloomberg. 
  • At 11:00 GMT, the Mortgage Bankers Association releases its Mortgage Applications survey. Last week’s number snapped the contraction path with a staggering 15.6%. 
  • At 14:00 GMT, the National Association of Home Builders will release its June Housing Market Index. The previous number was 45, and a steady 45 is expected again. 
  • Equity markets are not doing well again, with all indices in Europe in the red. US futures are marginally in the green. 
  • The CME FedWatch Tool shows a 32.8% chance of the Fed interest rate remaining at the current level in September. Odds for a 25-basis-points rate cut stand at 60.0%, while a very slim 7.2% chance is priced in for a 50-basis-points rate cut.
  • The benchmark 10-year US Treasury Note trades at its lowest level in a month, at 4.22%. No further moves expected today as bond markets are closed.

FXStreet

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