Support
Dollar strengthens on robust U.S. jobs data
Fed Rate Cut: 98% chance of a 25-basis point cut in November, down from last week’s 47% forecast.
CPI Focus: Markets await CPI data, expected to drop from 2.5% to 2.3%.
Asian Stocks: Advanced on robust U.S. payrolls data, with Japan leading gains and yen weakening.
Oil Prices: Fell after last week’s sharp rise, driven by oversupply concerns and softer demand.
The dollar
The dollar strengthened after the U.S. jobs report revealed the largest employment surge in six months for September, along with a decline in the unemployment rate and steady wage growth.
Market expectations have shifted significantly, with a 98% probability now assigned to the Federal Reserve making just a 25-basis point cut in November, according to CME's FedWatch tool. This is a sharp increase from last week’s 47%. The likelihood of no rate cut has dropped to just 2%, following the latest jobs data.
Markets will be focusing on CPI data this week that’s expected to drop from 2.5% to 2.3%.
Asian stocks
Asian stocks advanced this morning, driven by a surge in Japanese equities as robust U.S. payroll figures eased fears of an economic slowdown. Optimism surrounding potential stimulus measures from China further boosted market sentiment.
The region's stock performance followed Wall Street's strong rally on Friday, which was spurred by a much higher-than-expected nonfarm payrolls report.
Japan's yen dropped to its lowest level in almost two months, while other major currencies also faced declines. The USD/JPY was last seen up to 148.44
Oil prices
Oil prices declined on Monday, following their sharpest weekly gain in over a year. Concerns over an oversupply, coupled with weakening demand, outweighed fears of potential disruptions to exports from the Middle East due to escalating conflict in the region.
Brent was last seen near $77 while WTI was up to $73.
