- October 4, 2019
- Posted by: John Curran
- Category: Market News
Good morning,
Yesterday’s gains for the UD dollar were reversed this morning following US employment data for the month of September. Average hourly earnings reported lower at 2.9% from consensus 3.2%. Nonfarm payrolls also reported lower at 136K from 145K expected for September. Leading indicators such as private payrolls data and manufacturing data also disappointed earlier this week, along with initial jobless claims seeing an uptick versus estimates. The weaker than expected data raises the chances of a third FED rate cut in a row in 2019 on the Oct 30 FOMC meeting. Should a fourth rate cut also occur before the end of this year on the Dec 11 FED meeting this would reverse any of the hikes that were implemented in 2018 and signify an aggressive tightening cycle that has not occurred since 2008. USD/CAD medium term resistance levels remain at 1.3383 – September high along with support pegged at 1.3134 – Sep 10 low.