Money News Overview 3rd October: Geopolitical tensions bolster the Dollar

EU PMI figures and German CPI data in focus, US dollar is supported by job gains. Stay ahead of market shifts with tailored strategies.

Global Markets Look to Economic Data for Key Insights

This morning’s release of PMI data for the services sector in the UK, EU, Spain, Germany, and Italy has set the stage for a day of close market monitoring. Investors and analysts are watching for signs of expansion or contraction in these economies, which could shape trading decisions across the board.

US Economic Data to Drop Later Today

A wave of US economic reports is expected later in the day, including unemployment claims. These claims are forecast to tick up slightly to 220,000, a signal of potential softening in the US job market.

US factory orders, projected to flatline at 0 percent, suggest a dip in industrial demand—a development that may signal broader economic concerns. In contrast, the ISM Non-Manufacturing survey continues to show resilience, maintaining robust activity above the 50-point expansion threshold.

Tomorrow’s Non-Farm Payrolls in the Spotlight

Tomorrow, investors will have their eyes on the US Non-Farm Payrolls report. Economists expect a slowdown, with job growth anticipated to fall to 140,000, down from August’s figures. If this report falls below expectations, it could indicate a cooling labor market and add pressure to the dollar.

Geopolitical Tensions Boost the Dollar’s Safe-Haven Appeal

The dollar has emerged as the best-performing currency in the G10 this week, partly due to heightened geopolitical tensions in the Middle East. Investors have flocked to the dollar as a safe-haven asset amid the global uncertainty, which has strengthened the currency against its peers. Overnight, the dollar gained sharply against the pound, recouping nearly 200 points.

UK Interest Rate Cut Signals Weaken the Pound

In the UK, Bank of England Governor Andrew Bailey made headlines by signaling a likely rate cut of 0.25 percent next month. The pound responded with a decline, weakening against other major currencies. With the prospect of a rate cut looming, traders are recalibrating their expectations for the pound in the weeks ahead.

If you’re looking to stay ahead of market changes or capitalize on emerging opportunities, connect with one of our experts for tailored insights and guidance on navigating today’s economic landscape.