HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
Exness information and reviews
Exness
86%

Dollar and equities rebound from NFP-led losses as focus turns to US CPI


9 September 2024

Raffi Boyadjian   Written by Raffi Boyadjian

Signs of optimism after NFP bloodbath

Markets began the second week of September in a somewhat more upbeat mood as US slowdown jitters were put on hold even as inflation data out of China pointed to persistently weak demand in the world’s second-largest economy. Wall Street ended the week with heavy losses, led by a 5.9% drop in the Nasdaq 100, amid growing fears that the Fed has left it too late to take its foot off the brake and concerns about overspending on AI by the Big Tech.

Hopes that Friday’s jobs report would have lifted spirits by bolstering expectations of a 50-basis-points cut by the Fed when it meets on September 17-18 didn’t materialize. Instead, it worsened the uncertainty.

The US labour market added 142k jobs in August, missing expectations of a 160k increase and underscoring concerns that hiring could be grinding to a halt. Yet, the unemployment rate fell slightly to 4.2% while wage growth accelerated somewhat more than expected, giving the Fed little reason to kick off its easing cycle with a double cut.

Waller fails to soothe investor anxiety

Fed officials have not shut the door to a 50-bps reduction in September and even more hawkish members such as Governor Waller are open to the possibility of a larger cut. Speaking on Friday, Waller said he would support front-loading rate cuts “if that is appropriate”.

Other Fed policymakers that were on the wires on Friday also gave their backing to a September cut. However, considering the scale of angst in the markets, it seems that the comments didn’t go far enough in making the case for a 50-bps move, and with no more Fed speak until FOMC day, the sense of disappointment took over, pushing Wall Street lower.

Spotlight on US CPI as Fed blackout begins

Historically, September isn’t the best month for the stock market so the ‘September effect’ could also be at play, exacerbating the selloff. But hope is not lost as there is still the CPI report to go before the Fed meeting and that might explain why equities are rebounding today. The latest inflation numbers due on Wednesday are expected to show another drop in the headline CPI rate in August.

US futures are currently heading higher and European shares are positive too. Asian stocks, however, extended their losses, amid worries about China’s economy following the softer-than-expected CPI and PPI figures.

US dollar and oil pare losses as euro slips ahead of ECB

The pessimism about China weighed on the risk-sensitive Australian and New Zealand dollars, as well as on some commodities such as iron ore. But oil futures bounced back by more than 1%, finding some comfort in the decision by OPEC+ last week to delay the previously announced output increase in October by two months amid a slump in prices lately. Today’s jump could be just a technical recovery after hitting one-year lows on Friday, but it could also be the same realisation as in equity and bond markets that the doom and gloom is probably overdone.

The US 10-year yield is up sharply on Monday, putting the US dollar on a firmer footing after a seesaw session on Friday. The greenback came close to breaching the August low against the yen, but it is back above 143 yen today, while the euro is back in the $1.1050 region after a failed attempt to reclaim the $1.1100 handle last week. Further weakness in the single currency is likely in the coming days as the ECB is expected to cut interest rates on Thursday for a second time this cycle.

By XM.com

#source


RELATED

Dollar extends slide ahead of PCE inflation data

Fed Governor Waller reiterates support for lower interest rates; PCE inflation data may impact Fed rate cut bets beyond September; S&P 500 and Dow Jones hit fresh record highs; Gold gains, approaches upper boundary of sideways range.

29 Aug 2025

Equities rebound ahead of Nvidia earnings, dollar also firms

Steadier bonds and AI optimism help stocks to bounce back, Nvidia eyed; Dollar edges up as Fed independence fears ease slightly; But inflation and borrowing concerns keep risk appetite in check.

27 Aug 2025

Fed Chair Powell pushes the dollar off a cliff

Powell hints at a September cut, traders sell dollars; Wall Street indices rally, Dow Jones hits fresh record high; Attention to slowly shift to PCE inflation data later this week; BoJ Gov. Ueda expresses optimism about another rate hike soon.

25 Aug 2025

Fed hawks lower expectations for Powell’s Jackson Hole speech

September rate cut in question as Fed officials reluctant to switch policy; Dollar firms as bets grow that Powell will not send strong rate cut signal; Wall Street slips again as tech stocks continue to wobble.

22 Aug 2025

Markets muted as Jackson Hole awaited for direction

Investors struggle for direction amid the wait for rate clues from Powell; Fed minutes set hawkish tone ahead of Jackson Hole speech; US dollar edges higher, Wall Street steadier after tech selloff; Euro ticks up on stronger-than-expected flash PMIs.

21 Aug 2025

Gold edges up ahead of Ukraine talks, dollar steady

White House talks on Ukraine eyed after Alaska summit ends with little progress; Gold reverses higher, dollar flat after mixed US data; Stocks at or near record highs, Jackson Hole awaited for Fed clues.

18 Aug 2025

Stagflation fears keep dollar pinned near lows but stocks rebound

Markets subdued after ISM Services PMI revives inflation and growth worries; Dollar returns to post-NFP lows, gold eases from highs; Trump flags tariffs on pharmaceuticals and chips but equities inch higher.

6 Aug 2025

How Exness uses technology to deliver reliable liquidity, pricing, and execution

Liquidity and price accuracy are central to online CFD (contracts for difference) trading, but few brokers explain how they deliver either.

28 Jul 2025

US data supports patient Fed, deal with EU boosts appetite

Dollar gains as data allow the Fed to stay in wait-and-see mode. US and EU secure trade deal, tariff clock is ticking for others. Wall Street at record highs amid trade optimism and better earnings. Pound slides after retail sales, yen retreats even as BoJ hike bets increase.

28 Jul 2025

Trump announces tariffs on Mexico and EU

The US dollar gained against nearly all its peers on Friday, and continued to march north today, mainly driven by safe haven flows as US President Trump continued threatening the US’s trading partners with more tariffs.

14 Jul 2025

Trade tensions heat up, dollar firms, but stocks and cryptos stay bullish

Trump threatens 35% tariffs on Canada in another shock move, EU could be next. Remaining countries face tariffs of 15% or 20% in a major escalation. Gold gains some traction but star performer is Bitcoin, hitting new record.

11 Jul 2025

Trump threatens 50% tariffs on Brazil but stocks shrug it off, dollar steady

Trump announces fresh round of tariffs on Brazil and smaller nations; But only mild risk aversion as Nvidia drives equities higher, hits $4 trillion cap; Fed minutes erase July cut bets as doves in the minority, dollar supported.

10 Jul 2025

Markets await trade deals as Trump makes new tariff threats

The dreaded July 9 deadline for countries to reach trade deals with the United States is only two days away and President Trump has already pushed it back, amid signs of both progress and frictions.

7 Jul 2025

Risk appetite improves further ahead of PCE inflation data

Dollar stuck at 3-year low despite trade optimism; Fed rate cut bets weigh; Nasdaq 100 lifts global stocks to all-time highs, gold skids; Will the US PCE inflation report support or spoil the positive mood?

27 Jun 2025

Trump attacks Powell again; dollar hits new low, techs rally

Rate cut bets increase after Trump raises prospect of ‘shadow’ Fed chair; Dollar hits new 3-year low, but Wall Street flirts with record highs; Bitcoin extends gains amid geopolitical de-escalation, gold rebounds.

26 Jun 2025

Mideast conflict escalates as US strikes Iran but oil pares gains

US joins Israel-Iran conflict, strikes three nuclear sites; Oil jumps before pulling back as world awaits Iran response; Dollar edges higher but gold again fails to catch a bid; Euro dips but rebounds on mildly upbeat June PMIs.

23 Jun 2025

Oil surges as Israel attacks Iran, gold and dollar climb too

Israel launches military strikes on Iran as tensions flare; Oil jumps more than 10%, safe havens rally but stocks plunge; Bond yields fall ahead of big week for central bank decisions.

13 Jun 2025

US and China restore trade truce but markets subdued ahead of US CPI

US and China reach framework deal but lack of details caps sentiment; Fed rate cut bets scaled back ahead of expected US CPI increase; Cautious risk appetite supports equities, dollar steadier but gold climbs; Pound extends slide ahead of UK government’s spending review.

11 Jun 2025

Dollar bounces from six-week low, BoC decides on rates

Dollar rebounds on hopes of Trump-Xi call. Data points to labor market weakness ahead of Friday's NFP. Eurozone CPI slows ahead of ECB, BoC set to stand pat. Stocks gain, gold retreats, oil advances on geopolitical tensions.

4 Jun 2025

Uncertainty remains high at end of rollercoaster week for the dollar

US appeals court reinstates Trump’s tariffs, adding to market confusion; Dollar whipsaws, while Nvidia comes to Wall Street’s rescue; PCE inflation awaited as soft US data boost Fed rate cut bets; Gold can’t catch a bid amid some trade optimism, set to end week lower.

30 May 2025


Editors' Picks

How to Choose the Best Forex Advisor 2025

Key Factors to Consider When Choosing a Forex Advisor. Risk Management. Fees and Costs. Compatibility with Your Trading Style.

Automating Success: The Benefits and Risks of Using Forex Expert Advisors

This article explores the benefits and risks associated with using Forex Expert Advisors, providing insights into how traders can maximize their potential while mitigating potential downsides.

Best Forex Brokers 2025

By prioritizing factors such as overall rating, regulatory compliance, trading conditions and platform reliability traders can make an informed decision that aligns with their trading needs and aspirations, setting the stage for a potentially prosperous trading journey.

The Top Forex Expert Advisors 2024: Performance, Strategy, and Reliability Review

An annual roundup reviewing the most successful Forex Expert Advisors (EAs) based on their performance, strategies employed, reliability, and user feedback. This piece would provide insights into which EAs have been market leaders and why.

The Evolution of Forex Expert Advisors: Navigating the Path of Technological Revolution

The concept of automated trading has been around for decades, but the accessibility and sophistication of Forex EAs have seen significant advancements in the past few years. Initially, automated trading systems were rudimentary, focusing on simple indicators like moving averages.

Best Forex EAs – Forex Expert Advisors Rating

Expert Advisors (EAs) Rating features high-quality Free and paid Forex EA most popular on the market today.

FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%
Riverquode information and reviews
Riverquode
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.