Previous Day's Market Highlights
US ADP Employment Change came in well above forecast, supporting rate hike expectations and setting the bar high for Friday’s jobs report. The dollar strengthened further overnight, receiving support from a hawkish Fed Chair Powell, who sees interest rates possibly going above neutral, which is still a way off.
The greenback strength pushed euro-dollar below 1.15 overnight for the first time in over six weeks. Sterling-dollar hit a nearly four-week low. The corresponding euro softness has helped sterling-euro remain in the upper end of the 1.12-1.13 band. US dollar gains put downwards pressure on the Aussie and kiwi dollars, which both hit around two-week lows against the pound. However, the CAD has remained relatively strong, holding below 1.67 against the pound.
Prime Minister May danced to ABBA and called for unity in her speech at the Conservative party conference yesterday, also declaring Conservatives’ support for business. The overall impact on the pound was limited.
|Currency Pairing||08:00 Today||Vs 08:00 Yesterday||Four-Week High||Four-Week Low||% Change|
Today's Market Highlights
The calendar is relatively quiet today, particularly in the morning. This afternoon, mid-level US releases include weekly Initial Jobless Claims and Factory Orders (13:30, 15:00 BST).
ECB Member Cœuré will be speaking to a local French business community. Overall, markets will be keeping an eye out for any further geopolitical or trade headlines and awaiting tomorrow’s US jobs report for September.
Expectations are high for the number of jobs added to the economy after Wednesday’s ADP Employment Change surprised to the upside. Wage growth also remains a closely watched portion of the report. The data typically see volatility in the dollar.
Today's Economic Calendar
|1:30pm||USD||Initial Jobless Claims (28 Sep)||213K||214K|
|2:15pm||USD||Fed's Quarles Speaks|
|3:00pm||USD||Factory Orders MoM (Aug)||2.1%||-0.8%|
|3:00pm||CAD||Ivey Purchasing Managers' Index s.a. (Sep)||62.3||61.9|
|6:00pm||EUR||ECB's Coeure Speaks|
|11:30pm||AUD||AiG Performance of Construction Index (Sep)||51.8|
|2:30am||AUD||Trade Balance (Aug)||1,400M||1,551M|