Global services PMI data lead today's calendar
Key reports on the radar include services PMI data from major global economies, US jobless claims, the ISM PMI, and Durable Goods Orders
Weaker Australian and New Zealand dollars after soft PMI data
Silver prices pulled back to $31.60
Concerns over energy infrastructure and transport routes support oil prices
Commodities
Gold prices faced renewed selling pressure after bouncing from around $2,641, remaining subdued as the European session began on Thursday. The US Dollar continued its upward trajectory, reaching a three-week high as expectations for significant policy easing from the Federal Reserve softened. This strengthened the US Dollar, contributing to lower demand for the non-interest-bearing yellow metal. However, rising tensions in the Middle East have helped contain further losses for gold.
Silver prices saw a pullback from gains made in the last two sessions, trading near $31.60 per troy. The decline in silver prices can be linked to robust US labor data.
West Texas Intermediate, the US benchmark, was trading around $70.60 on Thursday. Oil prices climbed as traders evaluated potential risks to oil supplies in the Middle East, heightening concerns about disruptions in energy infrastructure or key transport routes, which supported the upward momentum in WTI prices.
Currencies
The British pound experienced a sharp decline after comments from Bank of England (BoE) Chairman Andrew Bailey suggested that the bank may adopt a more aggressive stance on interest rate cuts, given the easing pressure on basic goods and services prices. Following this news, the pound dropped.
The US Dollar and Swiss Franc emerged as top performers, while the pound and Antipodean currencies—such as the Australian and New Zealand dollars—faced notable declines. Both currencies weakened following disappointing final services PMI data for September, which came in at 50.5, lower than the previous 52.5 figure. This soft data could prompt their respective central banks to adopt more dovish policies, leading to the observed declines in these currencies.
Today's economic calendar
Investor focus to key reports, including services PMI readings from major global economies, along with U.S. jobless claims data, ISM PMI data, and Durable Goods Orders. Here's a breakdown of the scheduled reports:
- 10:00 AM (Eurozone): Services PMI forecast stands at 50.5, compared to the previous 52.9.
- 10:30 AM (United Kingdom): Services PMI for September is forecast at 52.8, down from 53.7 previously.
- 14:30 PM (US): Jobless claims are forecast at 220 thousand, up slightly from the previous 218 thousand.
- 15:45 PM (US): The services PMI for September is expected to come in at 55.4, just below the previous 55.7.
- 16:00 PM (US): ISM services PMI for September is forecast at 51.6, close to the prior 51.5.
- 16:00 PM (US): Durable Goods Orders for August are expected to remain flat month-on-month, after a strong 9.9% increase in the prior month.
- 16:30 PM (US): EIA natural gas inventories are forecast to rise by 59 billion cubic feet, compared to a previous increase of 47 billion.