Daily Market Update

U.S. Dollar finishes off week sustaining gains

October 05, 2018

The U.S. Dollar rose by over half a percent this week to start October after economic indicators continued to paint a rosy picture.

Overview

September’s Non-Farm Payrolls came in at 134K under the expected 185K; however, the prior month’s numbers were revised upward with the original 201K reading registering at a stellar 270K.

Additionally, Average Hourly Earnings grew at the forecasted monthly pace of 0.3%. The Yearly average is still at 2.8%, but economists want it higher so that it leads to higher spending. It is clear why the buck can manage to stay afloat in the midst of a volatile market with consistency in economic figures.

EUR

The Euro is attempting to mount a recovery against the dollar as it is rising off of impressive numbers out of Germany and Italy. German Factory Orders expanded by 2.0% in August more than doubling the 0.8% estimate. The measure is usually a good indicator of overall strength in the continent’s industrial production.

Down in the country with the perpetual spotlight, Italian Retail Sales beat expectations of just 0.1% growth by coming in at 0.7%. The much needed good news comes at a time when all eyes are focused on scrutinizing Italy’s spending.

GBP

Sterling climbed overnight after reports yesterday of a deal from the Tories that would resolve the issue of an Ireland/Northern Irish border. The European Union is said to have received a proposal that would basically agree with letting EU Customs rules reign in order to allow goods and people to mobilize relatively freely. Any positive steps towards a resolution in the Brexit process will keep boosting Pound in the fourth quarter.

 

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