US Dollar Index surpasses 107 for the first time in 11 months.
The US Dollar (USD) is bracing for a volatile trading day, while the US Dollar Index (DXY) is approaching a 48-week high. Volatility is expected to rise as a large batch of data points is released. More crucially, the Polish central bank’s next rate decision is scheduled for Wednesday, and it is expected to be a wild one.
Traders can dig as well. into the ADP Employment Change data. Although there is no association with the US Nonfarm Payrolls statistics on Friday, market players will continue to hunt for hints and indicators to assist them forecast the result of Friday’s number. Following the ADP figures, the Institute of Supply Management (ISM) will release its service sector data for September.
The US Dollar is having a bad day.
The Mortgage Bankers Association (MBA) released the weekly Mortgage Applications statistic for the end of September at 11:00 GMT. The previous week witnessed a -1.3% decrease, while the last week of September saw a -6.0% decrease.
The ADP Employment Change for September will be released at 12:15 GMT. The prior number was revealed. It now stands at 177,000 and is anticipated to fall to 153,000.
S&P Global’s Purchasing Managers Index (PMI) for the Services sector and the Composite for September will be released at 13:45 GMT: The Services PMI is projected to remain constant at 50.2, while the Composite is likely to remain unchanged at 50.1.
For the month of September, ISM data is available at 14:00 GMT. The Services Employment Index was 54.7 the previous time around, with no projection. The New Orders Index was 54.7, with no prediction. The PMI for services is predicted to fall from 54.5 to 53.6. The Prices Paid Index was at 58.9, with no projection.
Factory orders for August are scheduled to arrive.
Furthermore, factory orders for August are scheduled to arrive at that time, causing a spike. higher (from -2.1% to 0.3%).
Be on the watch for unexpected FX moves as the Polish Central Bank (NBP) announces its rate decision between 13:00 and 15:00 GMT. The last meeting featured a surprise rate drop of 75 basis points, which shook the forex market, causing significant movements in various currency crosses.
Equities are once again retreating: Asian markets are all down more than 2%. European markets are down more than 0.50%, as are US futures.
According to the CME Group FedWatch Tool, markets are pricing in a 71.2% possibility that the Federal Reserve will hold interest rates steady at its November meeting. This is a little decrease from the previous week’s figure of 77.5%.
The 10-year benchmark The US Treasury yield has reached a new high for the year, reaching at 4.83%. The interest rate difference narrative has resurfaced as a driving force in the US bond market.
