Morning Juice – US Session Prep (27th May)

Sentiment
The dollar dropped, extending recent losses, on concern over the impact of higher tariffs on the US economy and the risk of a widening fiscal deficit.

The DXY slipped for a third day, heading for its lowest close since July 2023, on weak demand for US assets.
An index of Asian currencies climbed toward the highest level since October, with the Taiwan dollar advancing for a sixth day.
Equity-index futures for the S&P 500 and Nasdaq 100 jumped, holding their gains from a Monday holiday, as Trump extended a deadline on aggressive Euro area tariffs.

The yen rose as much as 0.5% after Bank of Japan Governor Ueda indicated his intention to keep raising interest rates if the economy improves.
Treasuries edged higher with the 10-year yield falling three basis points. Japan’s 40-year bonds rose ahead of a bond auction Wednesday. Asian shares swung between gains and losses.

Trump’s tariff threats and the risk of a widening US fiscal deficit are showing up most clearly in the dollar, diminishing the appeal of the currency.
Hedge funds, asset managers and other speculative traders continued to bet against the currency with some of the angst coming from Trump’s proposed tax bill, which is expected to increase the federal deficit by hundreds of billions of dollars.

Docket
08:30 ET
US Durable Goods April Prelim
Orders – Forecast: -7.8% | Prior: 9.2% | Range: -10.0% / -0.5%
Core Orders – Forecast: 0% | Prior: 0% | Range: 0.6% / -1.4%

09:00 ET
US Case-Shiller 20 YoY for March
Forecast: 4.5% | Prior: 4.5% | Range: 4.6% / 4.8%

10:00 ET
US Conference Board Consumer Confidence for May
Forecast: 87.1 | Prior: 86 | Range: 92.8 / 82.0

11:30 ET
US sells $76 bln 3-Month Bills
US sells $68 bln 6-Month Bills

13:00 ET
US sells $69 bln 2-Year Notes

Speakers
09:30 ET
Fed’s Barkin Interviewed on Bloomberg TV

12:00 ET
ECB’s Nagel speaks about the German economy at ZEW Institute event in Mannheim.

12:20 ET
SNB’s Schlegel speaks in Basel.

Good luck!