US dollar holds on intraday gains as safe havens flourish

The US dollar is partially recovering from Friday’s losses, with US Treasury yields trading sideways around 4.61%. The benchmark 10-year US Treasury yield is at 4.61%, finding calmer ground after the volatile week last week.

The US Dollar Index is trying to recover from last week’s drop, but still has a long way to go. Economic data shows a bigger than expected deficit in the US trade balance, and speeches from Fed Governor Christopher J. Waller and New York Fed President John C. Williams may provide interest-rate guidance to the markets.

Chicago Fed member Austan Goolsbee has said the Fed will not commit to any rate decisions, but is paying attention to the movements in the bond market. The US Treasury is heading back to the markets for a 3-year note auction, with Consumer Credit Change numbers for September due at 20:00 GMT.

Asian equities are set to be red due to weaker export data from China, with Asian equities down over 1% and European equities mildly in the red due to US equity futures.

Markets are pricing in a 90.2% chance that the Federal Reserve will keep interest rates unchanged at its meeting in December, as per the CME Group’s FedWatch Tool.