Spreadex Market Update
USD Breaks Out To Fresh Highs Following NFP Beat
The US Dollar continues its recent winning streak, with the Dollar Index breaking out to fresh 2022 highs again this week, while EURUSD has fallen under 0.99. The dollar has been lifted on the back of Friday’s upside NFP surprise.
The headline reading came in at 315k, above the 295k expected. Although both the unemployment rate and average hourly earnings were seen missing projections, the beat on the headline data was enough for USD bulls to pile in further ahead of the upcoming September FOMC meeting.
Interestingly, despite the upside in USD, market pricing for a larger 75bps hike from the Fed has now softened to less than 60% from around 70% ahead of the data. US markets are offline today due to the long weekend for Labor Day, however, it will be interesting to see if USD begins to soften tomorrow, reflecting the shift in pricing.
Key Factors for Today
- USD broke out to fresh highs again today following Friday’s NFP beat
- Headline NFP came in at 315k vs 295k expected though earnings and unemployment rate both disappointed
- Equities stabilise as market pricing for September FOMC softens
- EUR weakens on growth fears amidst Nordstream gas line suspension
- OPEC meetings begin today
- Metals and commodities stable at start of week
Coming Up
- EUR Eurozone final services PMI
- OIL OPEC meetings all day
- GBP UK Final Services PMI
Equities Stabilise As Fed September Pricing Shifts
Stock markets look to be starting the new week on a slightly better footing. Following heavy losses across the board last week, many equities indices have since stabilised and are trading in the green across the European open on Monday. The shift in Fed pricing following Friday’s US labour data has no doubt had some impact on equities sentiment. However, looking across the week (with three central bank meetings due), there is plenty of event risk for equities markets and volatility is likely to be amplified this week.
USD Leads in FX, NZD Strong Also
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
