Dollar weakness continues; traders eye Fed minutes
The US dollar was down on Monday, extending its downtrend from last week. Earlier on Monday, the dollar basket set a new two-month low, a clear sign that traders believe that U.S. rates have peaked.
The People's Bank of China
In China, the People's Bank of China (PBOC) left its benchmark lending rates unchanged at the November monthly fixing as expected. The one-year loan prime rate was kept at 3.45%, and the five-year Loan Prime Rate (LPR) was unchanged at 4.20%. The JPY's weakness continues to limit further monetary easing, and policymakers prefer waiting to see the effects of previous stimulus on credit demand.
The USD
The USD was down on Monday, extending its downtrend from last week. Earlier on Monday, the dollar basket set a new two-month low, a clear sign that traders believe that U.S. rates have peaked. After US inflation came in below estimates last week, market commentators are now trying to work out how soon the first rate cuts could come. Current futures pricing shows a 30% chance that the Fed could begin lowering rates as early as next March; 60% expect it to come by May.
Zoom Video Communications
Zoom Video Communications is due to report its third quarter earnings tonight after market close. The street expects earnings of $1.08 per share. Revenue is forecast to rise by 1.8% to $1.12 billion. With people returning to offices, Zoom has had to offer new products. It has rolled. out a few Al-powered tools to compete against its rivals. And in 2024, Zoom will be entering two new markets, Contact Centre and Docs, going up against Microsoft Office and Google Docs.
NVIDIA
It will be a short week in the US, with Thanksgiving on Thursday. However, a few big players are due to report before then. Tomorrow, NVIDIA is expected to post earnings of $3.36 per share on revenue of $16.18 billion. HP should post EPS of 90 cents and revenue of $13.82 billion.
Best Buy
And electronics retailer Best Buy is anticipated to report earnings of $1.19 per share and revenue of $9.90 billion. Brent and US crude were trading higher on Monday, although on a downward trajectory since the end of September.
Oil
Oil analysts are waiting for the OPEC+ meeting on Sunday, November 26, and a possible decision to cut supply further after prices have dropped by almost 20% since late September. Since late 2022, Saudi Arabia, Russia, and other members of OPEC+ have already pledged total oil output cuts of 5.16 million barrels per day, or about 5% of daily global demand.
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