News

Greenback Extends Losses, Jobs Report in Focus

USD

The dollar index, which measures the greenback against a basket of major currencies, tumbled to a ten-day low of 97.21. On Wednesday, the Federal Reserve lowered interest rates for the third time this year by 25 basis points to support the slowing economic activity. Market participants were looking for hints on the future rate path but failed to grasp a clear signal. On the data front, the September core PCE Price Index dropped to 1.7% as expected. As for today, investors await the jobs report to have insight into the performance of the labor market in October. The US 10-year yields declined to 1.681%, the USDJPY plunged to 107.88, while the EURUSD rallied to $1.1175.

Equities

Major US stock index futures finished lower as China sparks investors' trade woes. Bloomberg reported that Chinese officials have doubts over the possibility of reaching a long-term trade deal with the United States due to Trump's impulsive nature. The Dow Jones Industrial Average futures dropped to 26847, the S&P500 futures tumbled to 3025, and Nasdaq futures declined to 8048.

Metals

Gold prices edged higher, boosted by the Fed's rate cut and trade concerns. The price of a gold ounce climbed to a one-week high of $1514, the price of a silver ounce advanced to $18.14, while Palladium dropped off a record high of $1825 to $1775.

Oil

Oil prices shed lower as Chinese officials spark trade concerns. Bloomberg reported the doubts of Chinese officials to reach a long term trade deal hitting investors' positive sentiment. The West Texas Intermediate crude futures declined to $53.71, and Brent futures dipped to $59.19.

Major Economic Events

GMT Country Event Expectation Previous

9:30

UK

Manufacturing PMI (Oct)

48.1

48.3

12:30

US

Average Hourly Earnings (MoM) (Oct)

0.3%

0.4%

12:30

US

Nonfarm Payrolls (Oct)

89

136

12:30

US

Unemployment Rate (Oct)

3.6%

3.5%

14:00

US

ISM Manufacturing PMI (Oct)

48.9

47.8

17:00

US

U.S. Baker Hughes Oil Rig Count

 

696


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