US Dollar changes course with mixed US data
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The US Dollar turned lower after Wall Street’s opening, DXY holds above 104.00. US GDP grew below expectations in the third quarter but still at a pace consistent with a strong economy. The pair remains moving sideways with 104.55 resistance limiting rallies The US Dollar Index (DXY) has moved back and forth during Wednesday’s European session. A better-than-expected US ADP Employment Report has eased labor market concerns triggered by weak job openings and improved investors’ expectations for Friday’s Nonfarm Payrolls numbers. Apart from that, the Gross Domestic Product (GDP) confirmed that the US economy advances at a faster pace than the rest of the major economies, with Personal Consumption Expenditures growing at strong levels. These data are consistent with steady inflation pressures, that force the Federal Reserve (Fed) to remain cautious with rate cuts. The US Dollar initially appreciated with the news, but gave up after a better-than-anticipated Wall Street’s performance in the first hour or trading. Daily digest market movers: The US Dollar shows signs of weakness ahead of key US releases US ADP Employment has shown a 233K increase on private-sector payrolls in October beating expectations of a 115K increase. In the same report, September’s reading has been revised up to a 159K increase, from the 143K reported last month. The Q3 US Gross Domestic Product revealed that the economy grew at a 2.8% pace. These figures fall short of the 3% growth foreseen by the markets but it is comparatively strong in a global context of economic slowdown. On Tuesday, the JOLTS report showed a decline to 7.44 million Job Openings in September, its weakest reading in more than three years. These figures raised concerns about a significant deterioration of the labour market and increased pressure on the US Dollar. Futures markets are now nearly fully pricing in a quarter-point interest-rate cut by the Fed…
Filed under: News - @ October 30, 2024 4:20 pm