America had another ‘bad news is good news’ moment yesterday; softer-than-expected ADP and growth data further fueled expectations that the Federal Reserve (Fed) is – maybe – good for a pause.

The S&P500 gained for the 4th consecutive session yesterday, as US 2-year yield settles below the 5% level. The softening Fed expectations are weighing on the US dollar, but keep in mind that the seasonality is on the dollar’s side in Septembers!

In Europe, the latest inflation numbers showed that inflation in both Spain and Germany ticked higher in August for the second month warning that the aggregate CPI number may not confirm a fall to 5.1% in headline inflation due to rally in energy prices. Later, the US core PCE data will say the last word before tomorrow’s jobs data. 

 

This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.

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EUR/USD clings to gains above 1.1700 amid EU-US trade optimism

EUR/USD clings to gains above 1.1700 amid EU-US trade optimism

EUR/USD posts small gains above 1.1700 in the European session on Thursday. The pair stays supported as the US Dollar faces headwinds from lingering US tariffs and economic woes while the Euro capitalizes on increased hopes of an EU-US trade deal. Attention turns to central bank talks and mid-tier US data for fresh trading impetus. 

Crypto market sees $500 million in liquidation as Bitcoin hit record highs amid dovish Fed minutes

Crypto market sees $500 million in liquidation as Bitcoin hit record highs amid dovish Fed minutes

Bitcoin reached a new all-time high of $111,999 on Wednesday amid dovish Fed minutes, fueling wider market optimism. CoinGlass data shows that over $500 million in leveraged positions were liquidated across crypto markets in the past 24 hours.

GBP/USD stays well bid above 1.3600 as US Dollar continues to sag

GBP/USD stays well bid above 1.3600 as US Dollar continues to sag

GBP/USD trades with moderate gains above 1.3600 in European trading on Thursday. The US Dollar softens against the Pound Sterling amid growing uncertainty around the impact of Trump's tariffs on the economy and the Fed's interest rate outlook. Fedspeak and US data are awaited. 

Gold price struggles to capitalize on its modest intraday gains amid mixed cues

Gold price struggles to capitalize on its modest intraday gains amid mixed cues

Gold price (XAU/USD) trims a part of modest intraday gains, though it manages to retain positive bias for the second straight day and trades around the $3,320 area during the early European session on Thursday.

New US tariffs target Asia, but some countries stand to gain

New US tariffs target Asia, but some countries stand to gain

President Trump’s new tariffs are higher than expected for most Asian economies. Moreover, most countries will face additional tariff rates on transshipments. The new announcements are silent on Singapore, India and the Philippines, which might stand to benefit from tariff concessions if negotiations progress favourably.

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