US dollar on its fourth consecutive day of advances.
US Dollar (USD) is trading firmly higher again on Thursday, fueled by safe-haven flows due to rising geopolitical tensions in the Middle East, a weaker Japanese Yen (JPY), and reducing possibilities of another significant interest-rate drop by the US Federal Reserve (Fed) in November.
The US dollar already pushed higher in Asian trading on Thursday. After incoming prime minister Shigeru Ishiba declared on Wednesday. That the The economy isn’t ready for another interest rate hike, which sends the JPY lower. The crisis in Lebanon also supporting the greenback through safe-haven inflows.
The economic calendar set for another highly busy day. Aside from the weekly Jobless Claims, traders are anticipating the S&P Global Services Purchasing Managers index and the Institute for Supply Management (ISM) September figures.
Daily summary market movers: Tensions remain high.US Dollar Index is testing the upper band of its September range, with a possible breakout later this Thursday.
Shigeru Ishiba, the new Japanese prime minister, indicated on Wednesday that the economy isn’t ready for another interest rate hike, pushing the yen down. Asahi Noguchi, a Bank of Japan (BoJ) board member, was quick to point out that markets should not react to every political speech.
Governor Andrew Bailey of the Bank of England (BoE) also made surprise comments, saying According to Bloomberg, the Bank of England may need to begin cutting quickly and forcefully.
US economic calendar began early with September’s Challenger Job Cuts data. Around 72,821 jobs were cut, compared to 75,891 layoffs in August.
The US economic calendar began early with September’s Challenger Job Cuts data. Around 72,821 jobs were cut, compared to 75,891 layoffs in August.
The weekly Jobless Claims report coming at 12:30 GMT. With initial claims expected to rise little to 220,000 from 218,000.
Around 13:45 GMT, the final S&P Global Services Purchasing Managers Index (PMI) for September projected to remain unchanged from the preliminary reading of 55.4. The Composite PMI should also hold unchanged at 54.4.
The Institute for Supply Management (ISM) will issue its September figures for the Services sector at 14:00 GMT:
The headline PMI expected to come in slightly higher at 51.7 compared to 51.5 a month before.
In August, the leading subindices were Employment (50.2), New Orders (53), and Prices Paid (57.3).
At 14:40 GMT, Federal Reserve Bank of Atlanta Raphael Bostic takes part in a debate with Minneapolis Fed President Neel Kashkari as part of the Opportunity and Growth Institute’s 2024 Fall Research Conference.
European markets are still down, but not as much as they were on Thursday. US futures are trading at a little loss on Thursday.
The CME Fedwatch Tool predicts a 67.4% possibility of a 25 basis-point rate drop at the next Fed meeting on November 7, with 32.6% expecting another 50 basis-point cut.
The US 10-year benchmark rate currently trades at 3.80%.Looking to test the three-week high of 3.81%.
