US Dollar Declines Ahead of S&P Global PMI, Other Data
The US dollar fell against its major trading partners ahead of data releases that start with weekly jobless claims and the Chicago Fed’s national activity index for September. The S&P Global manufacturing and services flash purchasing managers’ index estimates for October are due to be released.
A quick summary of foreign exchange activity heading into Thursday showed that USDEUR rose to 1.0799 from 1.0786 at the Wednesday US close and 1.0779 at the same time Wednesday morning.
Eurozone flash manufacturing PMI improved modestly in October but still indicated contraction, while the services PMI declined slightly but remained above the breakeven point, according to data released earlier Thursday.
The US dollar falls as the Federal Reserve looks more likely to cut interest rates in November and less likely to keep them unchanged, XTB’s Kathleen Brooks says.
GBPUSD rose to 1.2979 from 1.2933 at the Wednesday US close and 1.2971 at the same time Wednesday morning. UK flash manufacturing and services PMIs fell in October, but both still indicated modest expansion, according to data released earlier Thursday.
USDJPY fell to 151.8527 from 152.5841 at the Wednesday US close and 152.8172 at the same time Wednesday morning. Japanese flash manufacturing and services PMI both declined in October to indicate contraction, data released overnight showed. The next Bank of Japan meeting is scheduled for Oct. 30-31.
USDCAD fell to 1.3820 from 1.3836 at the Wednesday US close and 1.3828 at the same time Wednesday morning.
The Bank of Canada (BoC) cut its target rate by 50 basis points on Wednesday after three straight 25 basis point reductions, as expected, saying that inflation risks are now “reasonably balanced” and suggesting that further rate cuts are likely. The next BoC meeting is scheduled for Dec. 11. #US Dollar Declines Ahead of S&P Global PMI, Other Data Stanbic IBTC Adds Fixed Income Asset into Securities Lending Services
