- Prior was +128K
Articles
Breaking: Private sector employment rises by 132,000 in August vs 288,000 expected
253354 August 31, 2022 20:26 FXStreet Market News
The data published by Automatic Data Processing (ADP) showed on Wednesday that private sector employment in the US rose by 132,000 in August. This reading came in weaker than the market expectation for an increase of 288,000.
Commenting on the report, “our data suggests a shift toward a more conservative pace of hiring, possibly as companies try to decipher the economy’s conflicting signals,” said Nela Richardson, chief economist, ADP. “We could be at an inflection point, from super-charged job gains to something more normal.”
“Year-over-year change in annual pay was 7.6% in August, in line with monthly readings since Spring 2022,” the ADP’s publication further read. “In early 2021, annual pay increases were running at about 2%. While the pace of pay increases is elevated, its growth has flattened.”
Market reaction
With the initial market reaction, the US Dollar Index edged lower and was last seen trading flat on the day at 108.85.
Developing story…
Full Article
ADP June US employment 132K vs 288K expected
253352 August 31, 2022 20:21 Forexlive Latest News Market News
- The revamped ADP report
Full Article
Norges Bank will sell more NOK, this points towards a weaker krone ahead – Nordea
253351 August 31, 2022 20:17 FXStreet Market News
Norges Bank announced that they will raise their NOK selling to 3.5bn from 1.5bn NOK per day. This large shift points toward a weaker Norwegian krone ahead, according to economists at Nordea.
Norges Bank shifts gears, expect a weaker NOK
“We see EUR/NOK trading above 10.00 in the months to come.”
“Norges Bank will sell 3.5bn NOK/day going forward on behalf of the Government, due to a larger petroleum tax flow. At the same time, equity markets will likely continue to be choppy after the hawkish messages from central bankers, well-illustrated by Fed’s Kashari’s comment that he was ‘happy’ with falling stocks. Both of these factors point towards a weaker NOK, while high energy prices should soften the blow.”
“We see EUR/NOK around 10.30 by year-end.”
Full Article
ECB to hike 75 bps as inflation has not yet peaked, first response to be a stronger EUR – Nordea
253350 August 31, 2022 20:12 FXStreet Market News
The inflation rate in the eurozone rose further in August from 8.9% to 9.1%. Economists at Nordea now expect the European Central Bank (ECB) to hike by 75 bps next week – even if new staff projections for growth are approaching the downside scenario – lifting the euro.
ECB likely to deliver 75 bps in Sep
“Inflation remained almost unchanged at high levels in Aug, but will rise in the coming months as gas prices pass through.”
“ECB to deliver 75 bps in Sep. Risk of 75 bps again in Oct.”
“ECB’s staff projections nearing downside risk scenario, but no recession likely in forecast.”
“Given that a 75 bps rate hike is not fully in prices in financial markets and that the tone of the press conference is likely to be hawkish, we expect the first response in financial markets to be a higher rates, wider bond spreads and a stronger EUR.”
Full Article
Fed’s Mester: I don’t anticipate Fed rate cuts next year
253349 August 31, 2022 20:12 FXStreet Market News
Cleveland Federal Reserve Bank President Loretta Mester said on Tuesday that she was not anticipating the Fed to cut rates next year, as reported by Reuters.
Additional takeaways
“We need to raise the policy rate to somewhat above 4% by early next year; hold it there.”
“Real rates will need to move into positive territory; remain there for some time.”
“Bringing down inflation will be painful in the near term; requires a lot of fortitude.”
“I see the unemployment rate rising somewhat above 4% by the end of next year.”
“Size of rate increases at each meeting depends on the inflation outlook.”
“I have not incorporated recession into my base outlook for the US economy.”
“Risks of recession over the next year or two have moved up.”
“I expect inflation in the range of 5-6% for this year, then to make more progress back down over next 2 years.”
“Wage pressures show little sign of abating.”
“Without asset sales, reduction of the balance sheet could take 3 years or so.”
“Far too soon to conclude inflation has peaked.”
Market reaction
These comments don’t seem to be having a significant impact on the dollar’s valuation. As of writing, the US Dollar Index was up 0.15% at 109.00.
Full Article
Brazil Unemployment Rate meets forecasts (9.1%) in July
253348 August 31, 2022 20:09 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
India Infrastructure Output (YoY) dipped from previous 12.7% to 4.5% in July
253347 August 31, 2022 20:09 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
ForexLive European FX news wrap: Another record inflation reading in Europe
253346 August 31, 2022 20:05 Forexlive Latest News Market News
Headlines:
Markets:
- AUD leads, CHF lags on the day
- European equities lower; S&P 500 futures up 0.2%
- US 10-year yields up 2.4 bps to 3.134%
- Gold down 0.5% to $1,714.88
- WTI crude down 2.8% to $89.10
- Bitcoin up 1.7% to $20,310
It was a bit of a choppy day in markets in general but the focus in Europe was on consumer inflation data for August, in which we saw another record reading. The headline annual figure came in above 9% and that just puts more pressure on the ECB to act aggressively next week, though policymakers have already talked that up in the past few days.
Still, it won’t do much comfort for the euro outlook with soaring energy prices continuing to be a problem with flows along the Nord Stream pipeline halted for the coming days and Gazprom also cutting off gas supplies to French utility, Engie, citing a payment dispute.
The dollar was initially softer but regained some poise during the session as the back and forth trading continues, with the main focus staying on Friday’s US jobs report. Equities were higher to start the day but have seen gains evaporate with European indices keeping lower while US futures are mildly higher after having turned red briefly during the session.
EUR/USD fell from 1.0040 to 0.9975 before keeping closer to parity now, down 0.1% on the day. Cable stays softer after yesterday’s drop with the pair down by 0.3% again to 1.1620. Meanwhile, USD/JPY is keeping steady around 138.50-70 levels through the day so far.
Commodity currencies are also little changed against the dollar, with the aussie and kiwi seeing early gains pared as the risk mood falters once again as we look towards US trading. AUD/USD was up to 0.6900 early on but is now up just 0.1% to 0.6850-60 levels.
As noted in the first linked post, there are quite a few developments in markets this week even as the focus stays on the US jobs report on Friday. Month-end trading will be something to watch out for in the session ahead before markets start to hone in on the main event at the end of this week.
Full Article
South Africa Trade Balance (in Rands) came in at 24.76B below forecasts (25.5B) in July
253345 August 31, 2022 20:05 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
India Gross Domestic Product Quarterly (YoY) below expectations (15.2%) in 2Q: Actual (13.5%)
253344 August 31, 2022 20:05 FXStreet Market News
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Polkadot price prediction: DOT price sideways to lower
253342 August 31, 2022 19:51 FXStreet Market News
- Polkadot price slips and loses gains from Monday.
- DOT price starts to make clear to investors that price is trading sideways.
- Expect another round of dollar strength as the greenback has taken a small step back these past few days.
Polkadot (DOT) price action is set to trade sideways to lower as bulls failed to push the price action higher despite the dollar backing off on Tuesday. From now on, traders can expect DOT price to trade sideways between the 55-day Simple Moving Average on the upside and the monthly S1 to the downside, which it is eventually expected to break below and then test $6.23 support. This comes as the dollar strength is set to return after its rally took a short pause.
DOT price in search of the bottom
Polkadot price action is still recovering from the full pairing back it underwent on Tuesday as bulls dropped the ball in their attempt to print higher prices in Polkadot. The issue came as equity markets took a step back and dragged cryptocurrencies with them. Although no more specific news or headlines triggered anything, it looks like markets and investors are starting to be on edge over the jobs report on Friday after the job openings report on Tuesday only showed an increase in the openings, with no cooling down as such. This suggests the Fed will continue to adopt a hawkish stance providing a headwind for cryptos.
DOT price is thus set to trade sideways to lower at the top of the 55-day Simple Moving Average (SMA) at $7.76. That level already did its duty in refraining bulls from trading higher last week. At the bottom, the monthly S1 support level underpins price action near $6.75 but could break should the dollar strengthen towards Friday. This means that $6.23 could be up for a test and provide a level where bulls and investors may buy into the opportunity.
DOT/USD Daily chart
Alternatively, there is a chance the DOT price rally could break above the 55-day SMA based on a fundamental change in the current macroeconomic backdrop. Should, for example, the wages in the US job report on Friday show a slowdown or decrease, that could be an omen of more declining inflation, which is exactly what the Fed is looking for, and suggest the adoption of a less hawkish policy response going forward. That would mean positive news for cryptos and see DOT price break above $8.00, opening up room to rally towards $10.35 in the near-term.
Full Article
Iran Foreign Minister: Carefully reviewing EU-drafted text for revival of 2015 nuclear pact
253341 August 31, 2022 19:51 FXStreet Market News
Iran’s Foreign Minister Hossein Amirabdollahian said on Wednesday that Tehran is carefully reviewing the EU-drafted text for the revival of the 2015 nuclear pact, as reported by Reuters.
“We need stronger guarantees from the other party to have a sustainable deal,” Amirabdollahian added. “The (U.N.) agency should close its politically-motivated probes.”
Market reaction
Crude oil prices showed no immediate reaction to these comments. As of writing, the barrel of West Texas Intermediate was trading at $89.10, where it was down 3.5% on a daily basis.
Full Article