Dollar Leads Month-End
Ashraf Laidi | Nov 01, 2018 01:04AM ET
The US dollar is nearing the best levels of the year on a number of fronts on a combination of fundamentals and month-end demand. Global indices are up nearly 1.7%, with the Dow 30 trading above its 200-DMA for the 1st time since Oct 23 as the 25K level gets back to focus. GBP is the only currency rallying against the US dollar, recovering from Tuesday's slump following reports from S&P that a hard Brexit would trigger a UK recession. The ADP employment report on private payrolls rose to 227K in September, exceeding expectations of 187K.
If there's a shoe to fall, it's likely to be China. Sentiment stabilized Tuesday and that led to a 41 point rally in the S&P 500. Consumer confidence data from the Conference Board was at 137.9 compared to 135.9 expected. The 18-year high was a reminder of the strength of the economy while a miss on the CaseShiller home price index was a reminder of the vulnerabilities.
Friday's release of the US and Canada jobs reports will likely confirm the continuously improving picture in both nations' labor markets. Volatility in indices will likely return next week when US voters get to cast their voice in Tuesday's mid-term elections. Several forecasting agencies point to the Democrats regaining majority in the House of Representative, while falling short from taking control in the Senate.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.