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The end of the week brings an extension of the better sentiment in the stock market. The US500 is up 1.30%, while the US100 is noted at a solid 1.70% gain.
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In the markets, we observe a significant weakening of the dollar and a drop in the yield of 10-year US bonds, which have fallen from levels close to 5.0% recently to almost 4.50% currently.
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The dollar is the weakest currency against the majority of the global currencies. On many currency pairs, declines reach over 1.0%. EURUSD gains 1.10% and is quoted around 1.0733.
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GBPUSD gains over 1.50%, breaking out from a key consolidation area. The currency pair has seen the most gains on the daily interval in many months.
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October labor market data reinforce investors' belief that the Fed has already ended the cycle of interest rate hikes. October NFP data:
- NFP total: currently: 150k. Expected: 180k. Previously: 336k.
- Unemployment rate. Currently: 3.9%. Expected: 3.8%. Previous: 3.8%
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October ISM index for services: currently: 51.8. expected: 53.0. previously: 53.6. The data is mixed, and individual sub-indexes deviate strongly from the median expectations.
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After today's NFP data from the USA, Fed Chairman from Richmond Tom Barkin commented on the labor market situation. The banker believes that the labor market is returning to balance. Barkin also sees evidence that price pressure in the market is somewhat decreasing.
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In the energy commodities market, we observe declines, with oil losing nearly 2.5% and quoted around USD 80.5 per barrel.
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Precious metals gained due to the weaker dollar, with Silver adding over 2%, and gold's gains limited to 0.5%.
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In the cryptocurrency market, we observe slight declines. Bitcoin loses 1.30% but still maintains around USD 34,500, Ethereum gains 0.50%. After recent stronger increases in BTC, we can observe a slight flow of capital towards smaller projects.
The dollar index (USDIDX) breaks down from local consolidation, which may lead to a test of support at 104.50, resulting from the 100 EMA and earlier price reactions. Source: xStation5
