Morning Brief 05 Oct: Sterling Sideways on Lower UK Inflation

DCFX · 05 Oct 2023 14.4K Views

US Private Employment Rises Less Than Expected

Private businesses in the US hired 89K workers in September, the fewest since a decline of 69K in January 2021, and below estimates of an increase of 153K, according to data published by ADP. Jobs were created in leisure/ hospitality, financial activities, and construction while employment declined in professional/ business services, trade/ transportation, and manufacturing.



The euro continued to trade below the $1.05 mark, remaining near its weakest level since November 2022, as investors digested statements from several European Central Bank officials and a series of US labor market data. ECB Governing Council member Mario Centeno indicated that the central bank's rate hike cycle is likely over.

Trend   →

Support : 1.04307

Resistance : 1.05100


The British pound steadied around the $1.21 mark, ending a string of falling days but remaining near its weakest level since mid-March, after a survey revealed British business activity was less subdued than feared in September. Additionally, investors are digesting a variety of economic data that presents a mixed picture of the US labor market. Simultaneously, investors are assessing indications of cooling inflation in the UK given expectations that the Bank of England interest rates will remain high for a long period.

Trend   →

Support : 1.20516

Resistance : 1.21555


The Australian dollar weakened to around $0.63, hitting its lowest level in 11 months after the Reserve Bank of Australia kept interest rates unchanged at 4.1% during its September policy meeting, holding rates for the fourth month in a row as expected extensively. This  makes the USD tend to continue to strengthen for quite a long time so this could cause a recession against the Australian Dollar currency.

Trend  ↑

Support : 0.61885

Resistance : 0.63875


The Japanese yen steadied near 149 per dollar on Wednesday after an unexpected surge in the previous session raised concerns that authorities could intervene in currency markets to support the yen. The currency jumped as much as 1.7% to 147.3 late Tuesday before giving back most of its gains as stronger-than-expected U.S. jobs data supported the view that the Federal Reserve will keep interest rates at restrictive levels for an extended period.

Trend  ↓

Support :  148.872

Resistance :   151.672


Gold lasts under $ 1,830 per ounce on Wednesday, the weakest level in seven months, depressed by strong dollars and high bond yields, because investors continue to digest new US economic data. The dollar strengthened to around a 10-month peak against a basket of its peers and US 10-year yields rallied to their highest level since 2007 as gold trended lower due to expectations the Fed will plan to raise interest rates, making the USD likely to get stronger over time.

Trend  →

Support : 1813

Resistance : 1836.5

Crude Oil (WTI)

WTI crude oil futures extended losses, falling below $85 a barrel on Wednesday, touching their lowest level since Sept. 1 after the latest EIA report indicated weakening gasoline demand and following news that Russia could lift its diesel ban in the coming days.

Trend  ↓

Support : 78.8

Resistance :  87



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