The forex market saw some interesting movements in the latest session. The dollar held steady, while gold continued its rally. Here’s a weekly update on interest rate expectations and some key comments from ECB officials.
ECB’s Šimkus mentioned that lower rates could be possible if disinflation becomes entrenched, indicating that policy will become less restrictive moving forward. Additionally, ECB’s Kažimír stated that all options are on the table for the December meeting.
In terms of economic data, Germany’s September PPI came in at -0.5% versus the expected -0.2% month-on-month. SNB total sight deposits stood at CHF 462.3 billion, slightly lower than the previous CHF 467.1 billion.
Market movements were varied, with the Swiss Franc leading and the Australian Dollar lagging. European equities were down, while S&P 500 futures decreased by 0.4%. US 10-year yields rose by 4.3 basis points to 4.128%. Gold saw a 0.6% increase to $2,736.00, WTI crude was up 2.3% to $70.81, and Bitcoin slightly declined to $68,325.
The session was relatively quiet, but there were noticeable shifts in broader markets. Equities trended lower, pushing the dollar higher alongside higher yields. EUR/USD moved down to 1.0845, while USD/JPY briefly touched the 150.00 mark after starting at 149.10 in Asia. Antipodean currencies, particularly the AUD/USD, retreated below its 100-day moving average.
US futures and European indices edged lower without significant catalysts. Tech shares led declines, with S&P 500 and Nasdaq futures down by 0.4% and 0.6%, respectively. Bonds were offered, supporting USD/JPY due to higher Treasury yields.
In the commodities market, gold continued its ascent towards record highs around $2,736. Traders in the US session may not have many catalysts to work with, leaving them to navigate the markets independently at the start of the week.
