Mixed News Again From the Global Economy

Wells Fargo Research Team Wells Fargo

U.S. Review

Looking for Further Improvement in the Labor Market

Minutes from the September FOMC meeting showed the committee was close to raising rates, but was awaiting some additional gains in the labor market. The job opening rate fell in August to an eight-month low, but the less volatile turnover measures showed little change. Hirings and involuntary separations fell slightly, while quits were up a bit.
Retail sales for September rose 0.6 percent, in line with expectations, but core sales, measured by the control group, disappointed by rising only 0.1 percent.
Measures of import prices and producer prices released this week point to a modest pickup in inflation.

Global Review

Mixed News Again From the Global Economy

Markets reacted negatively to the news that Chinese exports dropped 5.6 percent in September on a year-earlier basis in local currency terms (they dropped 10 percent in U.S. dollar terms) as markets were expecting exports to have grown 2.5 percent. The expectation is that, as the third quarter earnings release season starts, this weakness from Chinese exports is going to tarnish companies’ earnings at a time when the U.S. dollar has appreciated.
Perhaps the biggest concern for markets today is that the more coincident data are pointing to weakness after some relatively stronger months during the last part of the second quarter and the first month of the third quarter.

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Wells Fargo Research Team

Wells Fargo

EUR/USD stays defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

Cardano eyes short-term rebound as derivatives sentiment improves

Cardano (ADA) is trading at $0.257 at the time of writing on Thursday, after slipping more than 4% so far this week. Derivatives sentiment improves as ADA’s funding rates turn positive alongside rising long bets among traders.

The market trades the path not the past

The payroll number did not just beat. It reset the tone. 130,000 vs. 65,000 expected, with a 35,000 whisper. 79 of 80 economists leaning the wrong way. Unemployment and underemployment are edging lower. For all the statistical fog around birth-death adjustments and seasonal quirks, the core message was unmistakable. The labour market is not cracking.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.