Trade ideas thread – Thursday, 2 November 2023 | Forexlive

Good morning, afternoon and evening all.

The Fed kept rates unchanged with the Fed Chair dancing around future policy expectations. The Fed Funds futures for December are pricing no change in policy. You have to go to July to see some easing expectations (implying 5.09%). The September contract is implying 4.87%.

The US stock market rallied for the 3rd consecutive day this week with the NASDAQ leading the way with a gain of 1.64%. The broader S&P index also rose by 1.05% .

US yields fell sharply helped by the treasury indicating they would need to issue less bonds and would auction less out the curve.

• 2-year yield 4.954% -12.1 basis points
• 5-year yield 4.662% -15.6 basis points
• 10-year yield 4.742% -13.3 basis points
• 30-year yield 4.935% -8.9 basis points

in other markets:

• The price of WTI crude oil is trading down -$0.14 or -0.19% at $80.87 in after-hours trading.
• Spot gold is trading down $2.12 -0.11% at $1981.40.
• Bitcoin is higher in trading above the $35,000 level at $35,096

In the forex market, the AUD is ending the day as the strongest of the major indices. The EUR is the weakest. The USD is mostly lower with only modest gains vs the EUR and GBP. The greenback fell -0.88% vs the AUD on Wednesday.