Sticky US CPI data and hawkish comments from Fed officials lent extra support to the Greenback on Thursday prior to the release of further inflation metrics at the end of the week.
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Australia’s headline CPI inflation fell to the RBA’s target range in August. The Swiss National Bank is likely to cut rates in its Thursday meeting.
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Markets:
It was a lively session feature some notable data and central bank speak. The market was uneven throughout, particularly in FX where the dollar appeared to rally on the CPI data and fall on the claims data. But a closer look at each data point revealed several caveats that largely neutralize them.
In the bond market, the action was in the front end. Two-year yields hit 4.05% before today’s US data but fell to 3.97% afterwards on worries about rising jobless claims, even if the report was full of hurricane and strike caveats. There is also ongoing concern about a war in the Middle East that may have lent a bid, even as Bostic floated the idea of pausing in November.
On a second look, Bostic said he had already penciled in just one further rate hike this year on the dot plot so his comment is hardly a change in stance. That may have contributed to some late-day US dollar selling that largely erased a larger move that had seen the euro touche the lowest in two months at 1.0901.
There is also some fresh talk of politics as polls show Trump shoring up support, including a late-day one from Tipp showing him ahead by a point in Pennsylvania. There isn’t a real consensus on Trump’s impact on the dollar but some of the equity-specific trades are moving in his favor, showing it’s not all betting site hi-jinx.
USD/CAD is another trade in focus after the seventh day of gains saw the pair touch 1.3775 before pulling back by 30 pips late. Oil and better China sentiment have failed to help the loonie and Friday is the Canadian jobs report and the latest BOC business outlook survey.
Cable got some attention after The Guardian reported on a Labour proposal to increase capital gains taxes. There wasn’t a big delta from the euro even as GBP fell, so it was likely more on the US side of the equation but the political moves in the UK are adding some intrigue. The pair touched a one-month low of 1.3023 before a 40-pip rebound late.
Finally, eyes are on Israel and a potential strike in Iran today ahead of shabat and Yom Kippur.
Brent crude, hourly:
This article was written by Adam Button at www.forexlive.com.
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StoneX, a US-based financial services company, made an unsolicited $480 million takeover bid for UK-listed CAB Payments just months after its public listing. The proposal represents a significant premium to CAB Payments’ current share price.
StoneX’s Pursues CAB Payments
CAB Payments, which focuses in payment and trading
services, received the latest offer from StoneX on September 23, Dow Jones
Newswires reported. This wasn’t the first approach from the US firm.
Previously, StoneX proposed a deal in late July,
valuing CAB Payments at 115 pence per share, an offer that was swiftly
declined. However, the latest revised bid, set at 145 pence per share in cash
or shares, represents an 18% premium over CAB Payments’ current stock price of
123 pence.
CAB Payments is reportedly reviewing the proposal and
assessing its options before deciding the next step. The company is expected to
make a decision soon, as under UK takeover laws, StoneX has until November 7
to formalize its offer.
CAB Payments Listing
The proposal comes at a pivotal time for CAB Payments,
which was listed on the London Stock Exchange in July 2023. Since then, the
fintech’s share price has reportedly dropped by more than half. In April, StoneX Financial Ltd, a subsidiary of StoneX
Group Inc., collaborated with NatWest Group PLC. This partnership seeks to
boost NatWest’s global payment capabilities by offering clients better
cross-border FX services.
StoneX Payments, the company’s payments division, will
provide NatWest with third-party delivery and international FX payment
services. The agreement will facilitate cross-border payments and extend the
bank’s local payment reach across an additional ten currencies.
Meanwhile, StoneX Group posted a significant boost in
in revenue for the third quarter of fiscal year 2024, despite net profit
declining by 11%. Income from FX trading and contracts for difference rebounded
nearly 6%.
The financial service company registered a total
revenue of $27.1 billion for the three-month period ending June 2024, an 80%
jump from the previous quarter. Operating revenues expanded to $913.7 million,
an 18% boost from the same period last year.
This article was written by Jared Kirui at www.financemagnates.com.
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Silver prices bounced off a three-week low, rallied over 0.60%, and traded at $31.12 at the time of writing.
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UnitedHealth (UNH) closed at $597.70 on Thursday, 1.10% higher on the day.
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Verizon (VZ) stock sailed 2.6% lower on Thursday as US inflation failed to fall as much as expected.
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Good morning, afternoon and evening all. Any charts, technical analysis, trade ideas, thoughts, views, ForexLive traders would like to share and discuss with fellow ForexLive traders, please do so:
This article was written by Eamonn Sheridan at www.forexlive.com.
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Major US stock indices are closing lower day after both the S&P and the Dow industrial average closed at record levels.
The final numbers are showing:
The small-cap Russell 2000 fell -12.16 points or -0.55% at 2188.41
The US CPI data was higher than expectations. Tomorrow, the PPI data will be released.
The initial jobless claims meanwhile were higher than expectations (weaker employment). However, there could have been some imports from things like the strike and weather. I would hold off on judgment for another week or two.
AMD shares fell -4.0% in trading today after launching lauched a new AI chip which it feels will rival Nvidia’s data center GPUs, particularly the upcoming Blackwell chips.
AMD hopes the new MI325X chip will gain traction with developers and cloud providers, potentially placing pricing pressure on Nvidia, which currently dominates the AI GPU market. The MI325X will start production by the end of 2024, and AMD is accelerating its product cycle to compete better in the AI boom, which it predicts could be worth $500 billion by 2028.
The quarterly bank earnings will start tomorrow morning with BNY Mellon, Wells Fargo and J.P. Morgan Chase scheduled to release.
Next week other financial companies will announce
Tuesday:
Wednesday:
Thursday:
Friday
This article was written by Greg Michalowski at www.forexlive.com.
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None of this lot is likely to move major FX much upon release.
This snapshot from the ForexLive economic data calendar, access it here.
The times in the left-most column are GMT.
The numbers in the right-most column are the ‘prior’ (previous month/quarter as the case may be) result. The number in the column next to that, where there is a number, is the consensus median expected.
I’ve noted data for New Zealand with text as the similarity of the flag with Australia can sometimes be confusing.
This article was written by Eamonn Sheridan at www.forexlive.com.
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Gold prices recovered some ground on Thursday during the North American session, edging up some 0.67% after a hotter-than-expected US inflation report, which was tempered by soft US jobs data.
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