The US dollar remains mostly unchanged against major currencies as trading begins on this day. There are no noteworthy economic releases scheduled, and this marks the final opportunity for Federal Reserve officials to speak before a period of silence begins.
Here’s a glance at how the US dollar stands against other currencies:
- Euro -0.02%
- Yen -0.19%
- Pound -0.04%
- Swiss Franc -0.25%
- Canadian Dollar -0.12%
- Australian Dollar unchanged
- New Zealand Dollar -0.10%
A video analysis discusses three key currency pairs: EURUSD, USDJPY, and GBPUSD. What insights can the charts provide as this week wraps up?
In other headlines, geopolitical factors are significantly shaping market movements. Yesterday, President Trump had a meeting with Russian President Vladimir Putin, ahead of another meeting with Ukrainian President Zelensky. Notably, both leaders expressed a desire to meet again soon.
Today, the Kremlin announced that Foreign Minister Lavrov and US Secretary of State Rubio still have key issues to resolve before the anticipated summit between Trump and Putin. A meeting could take place in the next couple of weeks, but both sides are cautious, urging not to waste time. In recent exchanges, Putin reiterated Russia’s willingness to negotiate regarding Ukraine, while also voicing concerns over missile deliveries to that country.
Moreover, the relationship with China is also heating up. Yesterday, USTR’s Greer suggested that China might consider distancing itself from the US, presenting potential complications. Rare earth elements remain a crucial aspect of the US commodity landscape, yet China is also dependent on the US economy for its own growth. This morning, Trump mentioned a meeting with Xi from China might happen in the next two weeks, emphasizing that current tariffs are ‘unbearable,’ but he believes the US will manage to find common ground.
On the other hand, the US government shutdown continues for its 17th day, with Trump threatening to make the shutdown permanent as leverage for reaching an agreement on a Democratic program.
White House Economic Advisor Kevin Hassett also shared his views today, stating confidence in the US economy and highlighting the potential for 4% growth. He noted that the Fed’s recent interest rate cuts have laid a foundation for ongoing expansion. When it comes to trade relations with China, he insisted that the US isn’t really at war, hoping for a return to mutually beneficial ties, though he admitted being let down by some of China’s recent actions. Hassett warned that if the shutdown persists, Trump is likely to escalate his responses.
As for the stock market, overall US stocks are trending lower in the morning, despite not reaching the previous lows.
DOW UP 36 points
S&P -7.07 points
Nasdaq -73 points
Yields in the US bond market are on the rise. Yesterday, the 10-year Treasury yield fell below 4% for the first time since October 2024.
- 2-year yield: 3.444%, +1.9 basis points
- 5-year yield: 3.578%, +2.1 basis points
- 10-year yield: 3.993%, +1.7 basis points
- 30-year yield: 4.600%, +1.7 basis points
Bitcoin is facing challenges, down $2,369 (or 2.19%) at $105,837. Crude oil prices have declined again, dropping below $57 to settle at $56.15, with the stock trading at $57.07, down $0.41 (or 0.73%).
Surprisingly, gold prices have fallen as well, currently at $4293, down $31.82 (or 0.73%). Interestingly, earlier today, gold reached a new high of $4380.79 before pulling back. Looking at the hourly chart, the price is testing the low of the channel trend line after breaking above the previous high earlier today, but it couldn’t maintain that momentum.
