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Forex Today: Weak JOLTS data fuels hopes of Fed rate cut

Forex Today: Weak JOLTS data fuels hopes of Fed rate cut

Yesterday's weaker-than-expected JOLTS US job openings data gave stocks a slight boost on expectations of a more dovish Fed, but the dollar remained unfazed.

➡️ Yesterday's release of JOLTS data on US job openings was lower than expected, showing only 8.73 million jobs when 9.31 million were expected. This boosted stocks slightly as the likelihood of rate cuts by the Fed increases, but apparently not by much as the dollar was little affected by the data.

➡️ Australian GDP data showed third-quarter economic growth of just 0.2%, significantly lower than expected growth of 0.5%. It is unclear whether this had any effect on the Australian dollar.

➡️ The Bank of Canada will hold a policy meeting today. The overnight rate is expected to remain unchanged at 5%.

➡️ Bitcoin yesterday rose strongly, reaching a new 18-month high above $44,000. The cryptocurrency has declined in the last few hours, but will remain interesting on the Long side for trend traders.

➡️ The long-term bearish trend of the US dollar is a key factor in the Forex market, driven by the feeling that the Federal Reserve has likely finished its current tightening cycle and will begin cutting rates. However, the US dollar is currently gaining ground, as it has done in recent days. Since Tokyo opened, the New Zealand dollar has been the strongest major currency, while the euro has been the weakest.

➡️ Crude oil appears weak despite Saudi reassurances on OPEC cuts earlier this week and is trading at a new 5-month low.

➡️ The ADP forecast on the change in non-agricultural employment will be published today, which projects 131,000 net new nonfarm jobs to be created last month.

 

Credit by DailyForex.com

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