- NFP data due but will not be released.
- BoC looking for reasons to cut rates
- US dollar opens mixed to lower
USDCAD open 1.3964, overnight range 1.3958-1.3970, close, 1.3968, WTI 60.81 Gold 3864.89
The Canadian dollar dropped through support yesterday and consolidated the losses overnight. The currency remains undermined by the weak Canadian growth outlook, pressure from U.S. trade frictions, and expectations that softer U.S. rates will translate into further Bank of Canada easing.
WTI oil prices traded in a 60.59-61.39 range, climbing off lows after reports of a fire at a major Los Angeles refinery and on talk that OPEC could announce a larger-than-expected output increase at its upcoming meeting.
The US September nonfarm payrolls report is projected to show an increase of 50,000 jobs following the 22,000 gain in August, with the unemployment rate steady at 4.3%. CNN reports that while the BLS has completed the data collection, the decision to release the figures lies with the White House. The ISM Services PMI is expected to slip to 51.7 from 52, with results due at 10:00 am EDT.
Asian equity markets mirrored Wall Street’s positive tone. Japan’s Topix added 1.35%, Australia’s ASX 200 advanced 1.57%, while Hong Kong’s Hang Seng slipped 0.54% but still managed to end the week 1.06% higher.
European bourses were also firmer as of 7:10 am, with the UK FTSE 100 up 0.67%, the CAC-40 rising 0.28%, and Germany’s DAX gaining 0.09%. S&P 500 futures rose 0.22%. The U.S. dollar index traded at 97.77, and the U.S. 10-year Treasury yield held at 4.00%.
EURUSD traded in a 1.1710-1.1745 band and is hovering near the upper end. Eurozone September Composite PMI inched up to 51.2 from 51.0, while Services PMI rose to 51.3 from 50.5. Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, noted that activity in the service sector improved, with growth evident across Germany, Italy, and Spain, which offered the single currency modest support.
GBPUSD moved higher within a 1.3429-1.3468 range, even as the UK Services PMI highlighted slower growth, slipping to a five-month low. The report cited weak consumer sentiment, delayed business investment, and softer exports as the main drags.
USDJPY traded in a 147.10-147.82 band. Stronger Japanese service sector PMI data, showing continued expansion into the third quarter, was balanced by dovish commentary from BoJ Governor Kazuo Ueda, who warned that uncertainty over external demand and trade policies could encourage firms to prioritize cost-cutting at the expense of wage gains.
AUDUSD traded at the top of its 0.6589-0.6610 corridor, supported by Services PMI data that confirmed ongoing expansion in the sector.
There are no Canadian data releases today.
