The U.S. dollar rose while the Japanese yen fell on Thursday following a positive private sectors job data. Analysts referring to U.S. services and private payrolls that increased by 230,000 in September. Economists had expected the ADP nonfarm payrolls report to show a gain of 187,000 jobs. Federal Reserve Chairman Jerome Powell said in a speech in Boston on Wednesday that the economic outlook was “remarkably positive” and that rates might rise above “neutral”, currently anywhere from 2.5 to 3%. The USD/JPY pair was down 0.12% at 114.41, while the Aussie dollar and the Kiwi both slid 0.3% against the dollar.
Moreover and after stellar economic data, including a 6-month high in ADP Non-Farm Employment and the highest ever reading in the ISM Non-Manufacturing PMI Employment subcomponent, investors are anticipating a strong Non-Farm Payrolls report on Friday. Accordingly, we’ve seen US yields rise across the board, with the benchmark 10-year Treasury bond now yielding 3.18%, its highest level since July 2011, and the 30-year Treasury yield rising to 3.34%, the highest since September 2014.
In main currencies, the EUR/USD seems to with stand the latest political turmoil in Italy and any short-term spill to be limited, but it may be another six months before the dominant dollar trade is swept aside. Regarding GBP/USD, was left nonplussed after Theresa May’s keynote speech at the Conservative Party conference yesterday, which was seen as buying some time for the embattled UK leader as crunch talks with the EU over Brexit draw ever closer.
In commodities, Gold continues to struggle below $1200 following yesterday’s Fed Chairman Powel speech. Regarding Oil, traders have piled into wagers that U.S. crude oil could surge to $100 a barrel by next year, a milestone that until recently many considered unthinkable due to record U.S. production growth and relatively flat global demand.
For today there are no high impact news, however the focus can be at FOMC Member Quarles speech.