Economic Data: Unemployment Claims & ISM Services in Focus
Dollar Index:
The dollar hit a three-week high 101.69 against the euro on Wednesday after the ADP national employment report showed U.S. private payrolls increased more than expected in September, ahead of Friday’s highly anticipated jobs data.
Traders are also keeping a close eye on geopolitical tensions a day after Israel was attacked by Iran in a strike that raised fears the oil-producing Middle East could be engulfed in a wider conflict.
The yen also weakened after Prime Minister Shigeru Ishiba said Japan is not in an environment for an additional rate increase, an apparent effort to shake off his reputation as a monetary hawk, after a meeting with Bank of Japan Governor Kazuo Ueda on Wednesday.
Crude Oil:
Crude Oil prices climbed more than 3% on Wednesday as Israel and the United States vowed retribution over Iran’s biggest ever direct attack on its regional adversary, firing more than 180 ballistic missiles.
With Israel also ordering more soldiers into Lebanon to battle Iran-backed militant group Hezbollah, the conflict has rapidly intensified with little sign of de-escalation despite international pleas..
Gold:
Gold inched lower on Wednesday, hitting a pause after rallying more than 1% in the previous session, as traders hunkered down for more U.S. economic cues and developments on the Middle East conflict.
Copper:
Copper prices drifted higher on Wednesday, still basking in the glow of stimulus measures unleashed by top metals consumer China amid hopes that more support is on its way. Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.4% to $10,023 per metric ton in official open-outcry trading.
Prices action (MCX)
Gold 76390 (+1.02%), Silver 91375(+0.81%), Copper 856.60(+0.58%) Crude Oil (+3.31%) Natural gas 243.50(+0.16%)
Yesterday Economic Data and Event Update –
- Private payrolls increased by 143,000 jobs last month after rising by an upwardly revised 103,000 in August, the ADP.
- Job Openings, rose to 8.040 million from an upwardly-revised tally of 7.711 million in July. Economists had predicted the so-called JOLTS report would dip marginally to 7.640 million.
- The S&P Global Canada Manufacturing Purchasing Managers’ Index (PMI) increased to 50.4 in September from 49.5 in August, its first move above the 50.0 no-change mark since April 2023. A reading above 50 indicates expansion in the sector.
- Inflation in the 20 countries sharing the euro currency eased to 1.8% in September from 2.2% in August, Eurostat data showed on Tuesday, coming below expectations for 1.9% in a Reuters poll, primarily on falling energy costs and muted goods prices.
Major Economic Data and Event scheduled today
Eurozone
At 11.30am— Spanish Services PMI. Data is foreseen at 54 from previous 54.6.
At 7.30pm -Italian Services PMI. Data is foreseen at 51.2 from previous 51.4.
At 11.30am French Final Services PMI. Data is foreseen at 48.3 from previous 48.3.
At 7.30pm – German Final Services PMI. Data is foreseen at 50.6 from previous 50.6
At 11.30am— Final Services PMI. Data is foreseen at 50.5 from previous 50.5.
At 7.30pm – PPI m/m. Data is foreseen at 0.4% from previous 0.8%.
Above data could have a neutral impact on the Euro.
UK
At 2.00pm-Final Services PMI. Data is foreseen at 52.8 from previous 52.8.
Above data could have a positive impact on the Pound.
US
At 6.00pm-Unemployment Claims. Data is foreseen at 221k from previous 218k.
At 7.15pm- Final Services PMI. Data is foreseen at 55.4 from previous 55.4.
At 7.30pm –
ISM Services PMI. Data is foreseen at 51.6 from previous 51.5.
Factory Orders m/m. Data is foreseen at 0.1% from previous 5%.
At 8.00pm- Natural Gas Storage.
At 8.10pm- FOMC Member Bostic Speaks
Above data could have a volatile impact on the Canadian dollar.
Happy Trading!
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