Daily Update – 3rd October 2019
• USD ADP Employment Change The American currency has traded unevenly against its major rivals this Wednesday, albeit pressured by concerns about US economic growth and speculation that the US Federal Reserve could decide to cut rates further. The ADP survey on private jobs’ creation showed that in September, 135K new positions were added, slightly below the 140K expected. The GBP/USD pair is ending a third consecutive day unchanged around the 1.2300 level, despite some encouraging headlines related to Brexit. Finally, the UK government has published its Brexit proposals to the EU, including details about how to handle the Irish border issue. The plan would see some customs checks in Ireland post-Brexit, as it means that Northern Ireland will stay in the EU single market for goods, but leave the customs union. Meanwhile, EU’s Juncker welcome UK government’s determination to advance on Brexit talks, while Brexit negotiator Barnier announced that there is progress, but a lot of work still needs to be done. It seems EU authorities have decided to take a more cautious approach. • EUR Markit PMI Composite, Retail Sales • USD Jobless Claims, ISM Non-Manufacturing PMI It’s a busy day ahead on the Eurozone economic calendar. Spain and Italy’s service sector PMI numbers for September are due out, along with the Eurozone’s retail sales figures. The finalized service sector and composite PMI numbers are also due out of France, Germany, and the Eurozone. We can expect the Eurozone’s numbers to have the greatest impact on the day. Following disappointing manufacturing numbers, any downward trend in service sector activity and consumer spending will weigh. From the U.S, the market’s preferred ISM non-manufacturing PMI and factory orders will also have an impact on the European majors. On the geopolitical front, the EU reaction to Boris Johnson’s Brexit plans will also be in focus.Yesterday's Focus
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