We are still yet to see signs of mass layoffs in the US economy that would warrant undue concerns over the health of the country’s jobs market.
Thursday’s initial jobless claims figures provided another pleasant surprise, dropping to 218k in the week to 20th September (from a revised 222k). Durable goods orders also beat estimates (+0.5% vs. 0.1% estimate once transportation is excluded), while pending home sales rose 0.6% in the month to August (+0.3% estimate).
A handful of Fed members spoke on Thursday, but there were very few remarks on monetary policy, with chair Powell failing to touch on either US rates or the economy during his communications.
Today’s PCE inflation report is up next, although even a fairly sizable miss here would not be enough for us to start pencilling in another 50bp cut from the Fed in November.
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EUR/USD recovers to 1.1150 ahead of US PCE inflation data
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GBP/USD is off the lows but stays pressured below 1.3400 in the European session on Friday. A modest US Dollar uptick and a mixed market sentiment remain a drag on the pair. The focus now shifts to the high-impact US PCE inflation data for fresh impetus.
Gold price pulls back from record high ahead of US PCE Price Index, bullish bias remains
Gold price attracts some sellers on the last day of the week and retreats further from the all-time peak, around the $2,685-2,686 region touched on Thursday. The downtick is sponsored by the emergence of some US Dollar buying, which tends to undermine demand for the commodity.
US core PCE set to show continued disinflation trend, reinforcing Federal Reserve easing cycle
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RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
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