The USD is little changed to kickstart the new trading day.What are the technicals saying?

The USD is modestly changed vs the major currencies to start the US session and the new trading week. In the video, I take a look at the 3 major currency pairs – the EURUSD, USDJPY and GBPUSD – from a technical perspective.

This week the expectations is for a 25 basis point cut from the Fed on Wednesday, with many thinking it will be a hawkish cut as the Fed moves toward neutral. The Fed cut 100 basis points in 2024 and have cut 50 – soon to be 75 basis points in 2025. Inflation remains above the 2% target but has seemed to have steadied. The employment data is somewhat mixed with ADP showing weakness while the initial jobless claims showing strength or at least a “no hire/no fire” economy.

In other markets, US stocks are trading marginally higher after gains last week:

• Dow industrial average is up 10.01 points
• S&P index is up 9.85 points
• NASDAQ index is up 77.20 points

in the US debt market, yields are higher:

• 2-year yield 3.579%, +1.5 basis points
• 5 year yield 3.730%, +1.6 basis points
• 10 year yield 4.150%, +1.2 basis points
• 30 year yield 4.801%, +1.0 basis points