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Market Update – November 4 – A Cooler USD To Start NFP Day


  • The BOE As expected, rates rose 75 bp (Highest since 1989; 33 year) 2.25% To 3%, and suggested that the UK was Reckoning already And that it would continue until mid-2024, (The longest record). 2 out of 9 MPC members wanted 25 or 50bp. The peak was for Inflation Reduced from 13.3% To 11% But still more than 5x the 2% The target rate. Governor Bailey stated that they expect interest to increase. Rates to peak At 4.75%, Below the current consensus Niveau of 5.25%. Unemployment It is likely that it will rise to 6.4% Current decade lows at 3.5%. The likelihood of mortgage and lending rates rising to between 5% and 10% will also be a factor. 4.5-5.5% From 2.5-3.0% A year ago. Sterling Tanked Stocks in the UK The markets rose.

  • USDIndex – DA test of a sock was inserted. 113.00 To trade at 112.40 ahead NFPjobs news. ISM Services PMI (54.4 vs. 55.5) Data missing but Weekly Claims were better (217k vs 220K) It was lower than anticipated. Stocks fell (NASDAQ -1.73% Again, underperformed. Closed at a 10-year yield, it rose 4.124%. Asian The markets rallied (Japan is closed) on more speculation that China is about to ease it’s zero-covid policy, Chancellor Schultz It is also available in Beijing today.  (Hang Seng +6.54%Shanghai +3.75%).
  • Overnight – AUD Retail Sales Line (0.6%)
  • EUR – hit…

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