USD: Data tests continue – ING

Source Fxstreet

Markets got back into action after the US Labor Day with a defensive stance and risk assets coming under pressure. Markets saw a return of the textbook risk-off dynamics in FX: strong safe-havens (JPY, CHF, USD) and weak high-betas (AUD, NZD, NOK), ING’s FX strategist Francesco Pesole notes.

Fed’s Beige Book is coming

“The US ISM Manufacturing was a mixed bag yesterday. The headline index rebounded slightly less than expected to 47.2, as new orders slumped to the lowest since May 2023. At the same time, prices paid were above expectations at 54.0. We’d be wary of overinterpreting a survey that has been in contractionary territory for 20 of the last 21 months: ultimately, it is well established that for growth momentum to extend into the second half of the year, it will be up to services to drive it.”

“Today’s main event is the release of US JOLTS job openings, which are seen slowing from 8,184k to 8,100k in July. This figure feeds into an important metric: the ratio of unemployed persons per job opening, which has risen from the 0.5 low of 2022-23 to 0.8 in June. In July, unemployment rose to 7.16m, meaning that the ratio will likely round up to 0.9 unless job openings surprisingly spike back to 8.42m. In the two years before the pandemic, the average was 0.8-0.9, so a move to 1.0+ in the coming months would be a clear signal of labour market strain. The other event on the US calendar today is the Fed’s Beige Book.”

“We have been warning of pockets of USD strength in an environment where markets are fully pricing one 50bp cut by the Fed this year and may need to get more concerned about a US recession to move more on the dovish side. The key here is that US recessionary bets may end up hitting equities and high-beta currencies more than USD. We think the yen and Swiss franc are in a stronger position compared to other G10 currencies.”

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ethereum Drops Below $2,000 After Plunging Over 20% in a Month as Odds of $1,500 Retest SurgeEthereum Plunges Over 20% in a Month, Risking a Retest of $1,500 After Losing the $2,000 Defense Line.On November 13, Ethereum (ETH) plunged more than 5%, officially falling below the key
Author  TradingKey
12 hours ago
Ethereum Plunges Over 20% in a Month, Risking a Retest of $1,500 After Losing the $2,000 Defense Line.On November 13, Ethereum (ETH) plunged more than 5%, officially falling below the key
placeholder
Gold Price Forecast: Gold Tumbles Below $3,900 as Trump Says No Need for Iran Deal; Can October PPI Spur a Rebound? As of the Asian session on Friday (November 13), gold prices (XAUUSD) rebounded intraday following Thursday's sharp decline, trading near $3,910. Previously, gold tumbled 2.76% on Thursda
Author  TradingKey
15 hours ago
As of the Asian session on Friday (November 13), gold prices (XAUUSD) rebounded intraday following Thursday's sharp decline, trading near $3,910. Previously, gold tumbled 2.76% on Thursda
placeholder
Brent rose 3.3% and US crude stocks built 4.66 million barrels in the same weekBrent January settled at 95.82, up 3.3%, and WTI at 88.74, up 2.55%, after the US signalled it would not pursue a deal with Iran and attacks on Gulf shipping continued. In the same week, EIA data showed US crude inventories rising 4.657 million barrels against expectations of a 1.1 million draw, with gasoline up another 1.799 million. OPEC output also rebounded 1.96 million barrels a day to 27.16 million in October, led by Saudi Arabia at 10.56 million. This piece separates the geopolitical premium from the physical balance and lays out where each side of the trade is anchored.
Author  Irene Q.
18 hours ago
Brent January settled at 95.82, up 3.3%, and WTI at 88.74, up 2.55%, after the US signalled it would not pursue a deal with Iran and attacks on Gulf shipping continued. In the same week, EIA data showed US crude inventories rising 4.657 million barrels against expectations of a 1.1 million draw, with gasoline up another 1.799 million. OPEC output also rebounded 1.96 million barrels a day to 27.16 million in October, led by Saudi Arabia at 10.56 million. This piece separates the geopolitical premium from the physical balance and lays out where each side of the trade is anchored.
placeholder
Gold hit a one-year low while central banks bought 321 tonnes — the sellers were never the ones you thinkSpot gold closed at 3,876 on Thursday, down 2.8% and its lowest close in more than a year, with an intraday low near 3,852. The dollar is at a 19-month high of 103.21 and the 10-year yield is at 5.10%, so the price move is easy to explain. What is harder to explain is who sold: central banks bought 321 tonnes in Q3, the PBoC added for a 24th straight month, ETF holdings are near a record 4,256 tonnes, and roughly 95% of the futures selling came from non-reportable and sovereign-type accounts rather than hedge funds. This piece separates the two books that have to balance.
Author  Irene Q.
19 hours ago
Spot gold closed at 3,876 on Thursday, down 2.8% and its lowest close in more than a year, with an intraday low near 3,852. The dollar is at a 19-month high of 103.21 and the 10-year yield is at 5.10%, so the price move is easy to explain. What is harder to explain is who sold: central banks bought 321 tonnes in Q3, the PBoC added for a 24th straight month, ETF holdings are near a record 4,256 tonnes, and roughly 95% of the futures selling came from non-reportable and sovereign-type accounts rather than hedge funds. This piece separates the two books that have to balance.
placeholder
Today’s Market Recap: Nvidia Drops Over 4% After Jensen Huang Resigns, AMD and Broadcom Both Rise Over 5% On November 12, the three major U.S. stock indices closed slightly lower. Nvidia announced that Jensen Huang had stepped down immediately as CEO and director, draggi
Author  TradingKey
20 hours ago
On November 12, the three major U.S. stock indices closed slightly lower. Nvidia announced that Jensen Huang had stepped down immediately as CEO and director, draggi
Related Instrument
goTop
quote