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Midweek Forex market, the US Dollar continues to outperform its rivals as US Treasury bond rates rise. In the European morning, the US Dollar Index remains at multi-month highs above 107.00, and the 10-year US yield is closing in on 4.9%. In the second half of the day, the US economic docket will include ADP private sector employment and ISM Services PMI data for September, as well as August Factory Orders. Market players will continue to pay careful attention to central bankers’ views.
On Tuesday, data from the United States revealed that the number of job openings has increased. On the last working day of August, there were 9.6 million openings. This result was significantly higher than the July estimate and the market forecast of 8.8 million, attracting Federal Reserve (Fed) wagers. As a result, US T-bond rates rose, Wall Street’s key indexes fell, and the USD maintained its strength during American trading hours.
Meanwhile, numerous Republicans in the House of Representatives joined Democrats in deposing Speaker Kevin McCarthy by a vote of 216-to-210. Legislative action in the House will be suspended until a new House Speaker is appointed. On October 10, Republicans will convene to debate McCarthy’s replacement. Following this event, markets remain risk-averse, with another government shutdown deadline approaching on November 17. In keeping with the gloomy tone, Last spotted dropping between 0.5% and 0.8%, US stock index futures.
Forex Market movement in pairs
The Reserve Bank of New Zealand (RBNZ) held the policy rate steady at 5.5% during Asian trade hours on Wednesday, as predicted. In its policy statement, the RBNZ stated, “The Committee agreed that interest rates may need to remain at a restrictive level for a longer period of time.” NZDUSD fell below 0.5900 as a result of negative pressure.
USDJPY plummeted abruptly and lost more than 200 pips in a couple of minutes after climbing a few points above 105.00 in the American session. This price movement reignited speculation of a Bank of Japan intervention in the foreign currency market. Japanese Finance Minister Shunichi Suzuki, on the other hand, stated thatHe refuses to “comment on whether Japan intervened in the FX market.” The USDJPY pair recovered and stabilized above 149.00 on Wednesday.
The EURUSD fell slightly on Tuesday but failed to adjust on Wednesday. At the time of publication, the pair was trading within a tick of 1.0450. Later in the day, European Central Bank President Christine Lagarde will talk at the 2023 ECB Conference on Monetary Policy. Eurostat will also publish August Retail Sales figures.
GBPUSD climbed a few points above 1.2100 throughout the European session on Tuesday, but lost steam in the afternoon. The pair is trading slightly lower early Wednesday, but still just over 1.2050.
The gold price finished the day down due to rising US rates. Tuesday was the eighth consecutive day in negative territory. XAUUSD is still trading below $1,820 in the European morning.
