Market Update—The USD’s consolidation is extending a little further after its early week decline, leaving it mixed versus the majors.

Data was interesting yesterday with an uptick in initial claims and a very poor NAHB survey.

Markets are quiet but stable this morning after the massive rally in risk last week following the FOMC rate decision, the subsequent press conference with Fed Chair Powell, and Friday’s lower-than-expected headline US payrolls data.

U.S. Treasury yields declined Tuesday as investors look to jobs data that could provide hints about the state of the economy and the impact of the Federal Reserve monetary policy.

The US October Job Openings release yesterday sagged to its lowest reading since March 2021 with declines broadly across sectors, while the prior month figure was also revised down.

Payrolls grew by 199,000 last month, after increasing 150,000 in October, while the unemployment rate dropped to 3.7%.

“All participants agreed that the committee was in a position to proceed carefully and that policy decisions at every meeting would continue to be based on the totality of incoming information,” stated the meeting minutes from the latest FOMC rate decision, adding “Several participants noted that an increasing number of district businesses were reporting that higher interest rates were affecting their businesses or that firms were increasingly cutting or delaying their investment plans because of higher borrowing costs and tighter bank lending conditions."

Amid ongoing worldwide expansion, the most pressing concern in the market at present is whether the US dollar will retain its value through 2024.

The US Dollar is trading lower across the board in the early US session, after very calm European and Asian ones.

The US dollar weaker vs most currency pairs ahead of US data due out this morning.