The major currencies, from strongest to weakest, are as follows:
- GBP (strongest)
- USD (mixed gains and declines against various currencies)
- EUR
- CAD
- JPY
- CHF
- NZD
- AUD (weakest)
The USD is experiencing little change against all major currencies, with gains or losses of 0.10% or less.
U.S. bond yields are rising, with the 10-year Treasury yield currently at 4.993% (down from 5.021%). This indicates an expectation for elevated interest rates that may exceed the Federal Reserve’s target of 2.5%.
Fed Chair Jerome Powell has mentioned the possibility of tighter monetary policy due to a strong U.S. economy, but rising market interest rates may reduce the need for central bank intervention.
Key economic data to be released this week includes third-quarter GDP growth (with Atlanta Fed model at 5.4% and economists lower at 4.3%), as well as the core personal consumer expenditures price index, which the Fed closely monitors.
The expected substantial U.S. borrowing is contributing to the rise in yields, as the budget deficit for fiscal 2023 is higher than in previous years.
The Federal Reserve will announce a rate decision next week (November 1), with impact from rates yet to be fully reflected in the economy.
In the crude oil market, U.S. crude futures fell by 0.5% to $87.57 a barrel, despite aid convoys reaching Gaza and ongoing tensions in the area.
In premarket trading, U.S. stocks are lower for the 5th consecutive day.
Here is a snapshot of various market figures:
- Crude oil is trading at $87.57 (down from $89.54 on Friday)
- Spot gold is trading at $1977.35 (down from $1977.36 on Friday)
- Spot silver is trading at $23.19 (down from $23.08 on Friday)
- Bitcoin is trading higher at $30,642 (up from $29,863 on Friday)
In the U.S. stock market, major indices are trading lower, with NASDAQ index and S&P index down for the 5th consecutive day. Dow Industrial Average futures are implying a decline of -172 points.
In the European equity markets, major indices are trading lower, with the German DAX down 0.58%, France’s CAC down 0.02%, UK’s FTSE 100 down 0.59%, Spain’s Ibex down 0.81%, and Italy’s FTSE MIB down 0.14%.
In the Asia Pacific market, major indices were lower, with Japan’s Nikkei index down 0.83%, China’s Shanghai Composite Index down 1.47%, Hong Kong’s Hang Seng index down 0.72%, and Australia’s S&P/ASX index down 0.82%.
In the U.S. debt market, yields are moving higher, with the 2-year T-note at 5.116%, 5-year T-note at 4.918%, 10-year T-note at 4.986%, and 30-year bond at 5.147%.
In the European debt market, benchmark 10-year yields are trading higher.
