U.S. equities retreated throughout yesterday’s trading. The Dow Jones Industrial Average lost 0.14% to close at 30273.87. The S&P 500 lost 0.2% to close at 3783.28. The Nasdaq composite slipped 0.25% to close at 11148.64.
U.S. ADP nonfarm employment change printed 208K, beating estimates of 185K. The ISM non-manufacturing PMI came in at 56.7, lower than market estimates of 56.9. OPEC+ has also announced that it plans to cut oil production by 2 million barrels per day to shore up prices. The weaker-than-expected economic data sparked a sharp drop among equities, but it also limited stock losses as market participants bank on the Fed to slow the pace of tightening.
However, oil production reduced by OPEC+ could make reining in inflation a further challenge.
U.S. 10-year treasury yield climbed back above 3.7%– yields were last seen trading at 3.751%.
Federal Reserve bank of Atlanta president Raphael Bostic said on Wednesday he favoured raising interest rates to 4.5% by the end of the year, implying 125 basis points of tightening. Market participants betting on a dovish pivot from the Fed could be disappointed as current interest rates are rather not considered restrictive, yet, by the Fed.
On the economic docket, the ECB is set to announce its monetary policy meeting minutes during today’s European trading session. The U.S. will release initial jobless claims figures during today’s American trading session.
Main Pairs Movement
The Dollar index surged 1.39% throughout yesterday’s trading. The U.S. Greenback gained traction as economic data came in better than expected. ADP nonfarm employment change showed an upside shock to 208K—indicating a robust private sector; meanwhile, the non-manufacturing PMI printed 56.7, lower than the market consensus of 56.9. Both economic data supported the Dollar.
EURUSD lost 1.05% throughout yesterday’s trading as the Dollar surged. The shared currency fared worse against the Dollar as economic data from the U.S. shows a healthier economy than that of the E.U.
Cable lost 1.28% throughout yesterday’s trading. British PMI came in at 49.1, lower than the market consensus of 49.6.
The Dollar denominated Gold lost 0.58% throughout yesterday’s trading. The precious metal snapped a 6-day winning streak as market mood soured.
|Currency||Data||Time (GMT + 8)||Forecast|
|GBP||Retail Sales (MoM)||16:30||48.0|
|EUR||RBNZ Interest Rate Decision||19:30|
|USD||RBNZ Rate Statement||20:30||203K|
|CAD||Composite PMI (Sep)||22:00|