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Volatility on the first trading day of the week


U.S. equities witnessed a volatile trading session on the first trading day of the week. The initial hours of the American trading session saw equities extend their risk rally that started last Friday, however, markets turned cautious after Atlanta’s Fed president Raphael Bostic reiterated the central bank’s intentions of increasing rates beyond 5% to control inflation.

The Dow Jones Industrial Average lost 0.34% to close at 33517.65. The S&P 500 edged 0.08% lower to close at 3892.09. The tech-heavy Nasdaq Composite gained 0.63% to close at 10635.65.

The benchmark U.S. 10-year treasury yield gained 19 basis points and was last seen trading at 3.536%; while, the 2-year yield currently trades at 4.212%.

Tesla Inc’s 6% rally on Monday led the Nasdaq Composite to notch a winning session. Tesla has recently announced another round of price cuts in its China market to compete against growing Chinese-originating EV producers—specifically BYD.

Market participants will now turn their attention to the key U.S. CPI release scheduled for the American trading session on the 12th.

Main Pairs Movement

The Dollar index, which tracks the U.S. Greenback against a basket of major foreign currencies, continued to slump on the first trading day of the week. The Dollar index fell 0.71% throughout Monday’s trading as market sentiment continues to turn risk on.

EURUSD climbed 0.83% throughout Monday’s trading. The broad-based weakness of the Dollar allowed the Euro to climb for the second consecutive day.

GBPUSD rallied 0.8% over Monday’s trading. Price action for Cable could be dramatic as major economic data releases are scheduled for both the U.S. and Britain starting on Thursday.

Gold climbed above $1880 per ounce throughout Monday’s trading, but the precious metal could not hold its value as the Dollar made a late-session comeback. Gold was last seen trading at $1869 per ounce.

Economic Data

CurrencyDataTime (GMT + 8)Forecast
USD                Fed Chair Powell Speaks22:00