URGENT UPDATE: The USD remains stable against major currencies as trading kicks off in the US session today, October 2, 2023. Traders are closely watching as the Federal Reserve is expected to announce a 25 basis point rate cut on Wednesday, with many speculating it will be a hawkish move towards a neutral stance.
Currently, the USD is showing minimal fluctuations against key pairs: EURUSD, USDJPY, and GBPUSD. Market analysts are diving into the technicals of these currency pairs, highlighting crucial levels for traders to watch.
Inflation is still hovering above the 2% target, but recent data indicates it may have stabilized. Job market indicators present a mixed picture; while the ADP employment report shows signs of weakness, initial jobless claims suggest a “no hire/no fire” environment, reflecting resilience in the job market.
In parallel, US equities are trending slightly higher this morning following last week’s gains. The Dow Jones Industrial Average has increased by 10.01 points, the S&P 500 is up 9.85 points, and the NASDAQ has surged by 77.20 points.
In the bond market, yields are climbing, signaling investor anticipation ahead of the Fed meeting:
– 2-year yield: 3.579% (+1.5 basis points)
– 5-year yield: 3.730% (+1.6 basis points)
– 10-year yield: 4.150% (+1.2 basis points)
– 30-year yield: 4.801% (+1.0 basis points)
As we approach the Fed’s announcement, market participants are advised to stay alert for potential shifts in monetary policy that could impact the USD and broader financial markets. The outcome of this meeting could dictate the economic landscape for the remainder of the year.
Stay tuned for updates as this story develops.
