USDCHF: USD is calm and trading volume is low
Updated
The dollar traded subdued in early European trading on Monday, with the US holiday keeping trading volume down as traders considered the possibility of an early interest rate cut by the Federal Reserve.
At 04:35 ET (09:35 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 102.242, at the start of the holiday. Martin Luther King Jr.
The U.S. producer price index unexpectedly fell in December, according to data released Friday, prompting traders to increase bets that the Federal Reserve will start cutting interest rates as early as this year.
According to the CME FedWatch tool, the market now indicates a 78% chance that the US central bank will begin easing interest rates in March, compared with a 68% chance a week ago.
The US data calendar is quiet this week, with the main focus on retail sales data due out on Wednesday. This will be closely watched for signs that consumer spending - the main driver of economic growth - remains resilient in the face of rising interest rates.
Retail sales are expected to increase 0.4% in December, after rising 0.3% in November.
Investors will also have the opportunity to hear from several Fed officials, including Fed Governor Christoper Waller as well as Atlanta Fed President Raphael Bostic and San Francisco Fed head Mary Daly.
At 04:35 ET (09:35 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 102.242, at the start of the holiday. Martin Luther King Jr.
The U.S. producer price index unexpectedly fell in December, according to data released Friday, prompting traders to increase bets that the Federal Reserve will start cutting interest rates as early as this year.
According to the CME FedWatch tool, the market now indicates a 78% chance that the US central bank will begin easing interest rates in March, compared with a 68% chance a week ago.
The US data calendar is quiet this week, with the main focus on retail sales data due out on Wednesday. This will be closely watched for signs that consumer spending - the main driver of economic growth - remains resilient in the face of rising interest rates.
Retail sales are expected to increase 0.4% in December, after rising 0.3% in November.
Investors will also have the opportunity to hear from several Fed officials, including Fed Governor Christoper Waller as well as Atlanta Fed President Raphael Bostic and San Francisco Fed head Mary Daly.
Note
USDCHF SELL 0.8570- 0.8580TP1: 0.8540
TP2: 0.8500
SL: 0.8620
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