"The dollar index held steady on Wednesday, consolidating after five straight sessions of gains as investors awaited fresh labour market and activity data to gauge the Federal Reserve's next steps. Treasury yields were mixed, with the 10-year remaining slightly above 4%, though soft readings could drag it below that threshold. Markets are closely watching the ADP employment report and the ISM Services PMI, both due later in the day, for clues on the economy's underlying strength."
"Market participants expect private payrolls to show an increase of 25,000 in October after a surprise 32,000 drop in September, the steepest decline since early 2023. The services PMI is projected to edge up to 50.8 from 50, signalling marginal expansion. Signs of a cooling labour market or renewed weakness in services activity could bolster expectations for a more dovish Fed stance, potentially weighing on the dollar and yields."
The dollar index held steady after five straight sessions of gains as market participants awaited fresh labour market and services data to assess Federal Reserve policy direction. Treasury yields were mixed, with the 10-year note slightly above 4% but vulnerable to softer readings. The ADP employment report and ISM Services PMI were expected to provide clues to underlying economic strength. Private payrolls were forecast to rise by 25,000 in October following a 32,000 drop in September, while the services PMI was projected at 50.8, signalling marginal expansion. Traders placed roughly a 70% probability on a December rate cut amid data dependence and a prolonged government shutdown.
Read at London Business News | Londonlovesbusiness.com
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