US Dollar is trading flat at the start of the week, with US Nonfarm Payrolls as the primary event on Friday.
The US Dollar (USD) is trading broadly flat at the start of this week, near to its year-to-date lows set on Friday, ahead of a busy week that will conclude with the crucial Nonfarm Payrolls report. The key subject surrounding the jobs report will be how much the US Federal Reserve (Fed) will decrease interest rates at its November meeting.
US calendar begins quietly, with Chicago PMIs and the Dallas Fed Manufacturing Survey.
Monday’s economic calendar includes the Chicago Purchasing The September Managers Index (PMI) will be announce first, followed by the September Dallas Fed Manufacturing Business Index. Both indexes are in contraction zone, so it will be fascinating to observe how they move before US Federal Reserve Chairman Jerome Powell takes the stage at 17:00 GMT.
Daily market movers:US Dollar Index is hovering at its 2024 low, in need of significant support.
Monday will begin with two very crucial data releases. The first is the Chicago Purchasing Managers Index for September, which will be release at 13:45 GMT. The number is expected to remain in contraction at 46.5, slightly better than 46.1 in August.
Moreover The Dallas Fed Manufacturing Business Index for September scheduled for release at 14:30 GMT. Expectations are comparable to the Analysts expect the Chicago PMI to continue in contraction at -4.5, but improve from the prior -9.7.
This Monday, keep an eye out for these two Fed speakers:
Michelle Bowman, Federal Reserve Governor, speaks at the Bankers Association President/CEO Conference in Charleston, South Carolina, about 12:50 GMT, regarding the US economic forecast and monetary policy.
Around 17:00 GMT, Federal Reserve Chairman Jerome Powell makes a speech on the US economic outlook at the 66th National Association for Business Economics annual convention in Nashville, Tennessee.
Asian equity markets divided, with Japanese stocks down more than 3% and Chinese equities surging, with the Shanghai Shenzhen CSI 300 composite index up more than 8%.
The CME FedWatch Tool indicates a 60.4% possibility. anticipating a 25 basis-point rate drop at the next Fed meeting on November 7, with 39.6% expecting another 50 basis-point cut.
The US 10-year benchmark rate is trading at 3.77%, trying to test the three-week high of 3.81%.
