US Dollar recovers and bounces off session lows.

US Dollar (USD) rises on the back of some US statistics that suggests a higher US Dollar this Thursday. Aside from the bulk data release, eight US Federal Reserve (Fed) policymakers, including Fed Chairman Jerome Powell, are scheduled to speak. Market participants will pay close attention to comments after Bloomberg reported on Wednesday that a bond trader took out 118,000 future contracts betting on a large interest rate decrease at the Fed’s next meeting. November saw the biggest transaction size ever recorded.

US GDP confirms, while weekly jobless claims remain stable.

Major data items have been removed from the economic data set. The third reading of US GDP statistics were in line with expectations. The Durable Goods number was stronger than expected, while the weekly Jobless Claims number revealed yet another surprise about the health of the labor market.

Daily Market movers:US Dollar Index recovers from a 15-month low and rises on the back of positive statistics.

Bloomberg reported on Wednesday that a bond trader purchased 118,000 SOFR or Fed futures contracts, betting on a 50 basis point rate drop in November. The amount traded was the highest on record for a single trade and position.

The Chinese government is providing additional boost to markets, this time through a Several of its largest banks will receive a capital injection of one trillion Yuan (CNY).

Moreover At 12:30 GMT, the main component of the economic statistics was release.

Weekly jobless claims:

Initial Claims dropped to 218,000, down from 219,000 the prior week.

Continuing Claims for the week ending September 13 were higher than last week, at 1.834 million versus 1.821 million the previous week.

August US Durable Goods Orders:

Headline Durable goods dipped to 0%, better than the predicted -2.6%, following a 9.8% spike in July.

Durable goods, excluding autos and transportation, rose 0.5%, beating expectations of 0.1%.

Durable goods, excluding autos and transportation, rose 0.5%, beating expectations of 0.1% and reversing a 0.2% decline in July.

Furthermore The US GDP for the second quarter remained constant at 3%.Personal Consumption Expenditures (PCE) prices remained constant at 2.5% QoQ.

Core PCE remained unchanged from the previous quarter’s level of 2.8%.

The Kansas Fed Manufacturing Activity Index for September will be issued at 15:00 GMT. The expectation is for an increase to 9, up from 6 in August.

At 13:10 GMT, Fed policymakers will proceed to the stages:

At 13:10 GMT, Federal Reserve Bank of Boston President Susan Collins will participate in a virtual fireside conversation with Fed Governor Adriana Kugler about bank supervision and financial inclusion at a program hosted by the Federal Reserve Banks of Boston and Minneapolis.

Around the same time, Federal Reserve Governor Michelle Bowman gives a lecture on the US economic outlook and monetary policy. at a training hosted by the Mid-Size Bank Coalition of America Board of Directors.

At 13:20 GMT, Federal Reserve Chairman Jerome Powell delivers pre-recorded introductory remarks at the 2024 US Treasury Market Conference in New York, following by remarks from Federal Reserve Bank of New York President John Williams.

Federal Reserve Vice Chair for Supervision Michael Barr speaks at the 2024 US Treasury Market Conference in New York.

Federal Reserve Vice Chair for Supervision Michael Barr speaks at the 2024 US Treasury Market Conference in New York, while Federal Reserve Governor Lisa Cook takes part in a roundtable discussion about artificial intelligence and workforce development at an event hosted by the Federal Reserve Bank of Cleveland and Columbus State Community College in Ohio At 14:30 GMT.

At 17:00 GMT, expect comments from Fed Reserve Vice Chair for Supervision, Michael Barr. participates in a virtual fireside conversation on financial inclusion with Minneapolis Fed President Neel Kashkari at the Boston Fed’s Financial Inclusion and Banking Supervision Workshop.

Asian equities markets are rebounding, headed by China, following more capital injections into banks. European shares are behind somewhat, while US futures remain aligned with the Asian surge.

The CME Fedwatch Tool predicts a 39.5% possibility of a 25 basis-point rate decrease at the next Fed meeting on November 7, with 60.5% expecting another 50-basis-point cut.

The US 10-year benchmark rate is trading at 3.80%, trying to test the three-week high of 3.81%.