It’s the end of the month and there is a clear smell of risk aversion in (most of) the markets this morning. There’s a lot of red on equity screens after disappointing earnings data from Microsoft and Meta, notes Shaun Osborne, Chief FX Strategist at Scotiabank.
USD mixed to softer overall
“US growth data was a bit below expectations yesterday, but the general trend in positive US data surprises is spreading across the board and, beneath the surface, GDP data “Third quarter sales looked quite solid, with actual final sales to domestic buyers (excluding government, inventories and net exports) rising 3.2%.”
“Today the ECI, weekly applications and personal income/expense data and the PCE basic at 8:30ET (plus Chicago PMI at 9:45ET). Spending is expected to rise 0.4% M/M while core PCE is expected to rise 0.3% for the month but slow to 2.6% for the year. While the G10’s FX is mixed, the DXY maintains a somewhat softer tone despite the string of positive data.”
“It is marginal but the index is putting a little more pressure on the support indicated at 103.93. After the DXY’s three failures at 104.55 over the last week, a break below the support would suggest a drop in the index to 103.3 or so. Some consolidation in FX ahead of the risk of major events next week would not be surprising.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
