|

US data week: ISM, labor and sentiment in focus – TD Securities

Munoz and Nir expect a relatively quiet US data calendar, with ISM Services likely slipping to 54.0 versus 55.0 consensus, modestly higher Jobless Claims, and a small decline in UMich Sentiment to 47.5. They note September payrolls moderated mainly on seasonal factors, while underlying labor-market strength and rising participation support a still-resilient backdrop.

Services survey and labor signals

"September payrolls surprised to the downside last week, but the details showed underlying strength. The moderation in job gains was largely driven by seasonal factors — especially in leisure & hospitality (LHS figure below). The 3m and 6m averages also show job gains within breakeven."

"Meanwhile, the slight increase in the UE rate to 4.2% was for "good reasons" with participation and the employment-to-population ratio both rising."

"ISM services likely reversed its unexpected August gain, falling to a below-consensus 54.0 in September. We expect the recently strengthening new orders and activity components to lead the reversal while employment likely improved for a second consecutive report — though we expect it to stay in contraction. Prices paid will also garner attention after rising the past two months."

"Other key events this week includes a likely reversal in ISM services, decline in UMich (in line with last week's negative consumer confidence), the NY Fed SCE, and some more Fedspeak (see calendar below)."

"This week will be quiet with a likely decline in ISM services, Fedspeak — with Waller the highlight, FOMC minutes, and UMich."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)

Author

FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

More from FXStreet Insights Team
Share:

Editor's Picks

AUD/USD turns south toward 0.6900 as USD firms up

AUD/USD sees fresh selling and drops toward 0.6900 in late Asian trading on Monday, as renewed US Dollar strength weighs on the pair amid lingering Middle East and Russia-Ukraine geopolitical tensions. Focus remains on Oil prices, Treasury bond yields, and RBA expectations for fresh trading impetus in the major.

USD/JPY retakes 158.00 amid hawkish BoJ bets, firmer USD

USD/JPY erases losses and retakes 158.00 in the Asian session on Monday, trading within a one-week-old range. Geopolitical uncertainty continues to underpin the US Dollar, despite fading Fed rate hike hopes, supporting the pair's rebound. However, further upside could be capped by hawkish BoJ expectations and looming intervention risks that could support the Japanese Yen.

Gold flat lines below $4,150 as rallying USD offsets receding Fed hike bets

Gold extends its consolidative price move, trading below $4,150 heading into the European session, and moves within a range held over the past week or so. As investors look past Friday's disappointing US jobs data, the US Dollar regains strong positive traction and rallies to a fresh high since April 2025. This is seen as a key factor capping the commodity, though receding bets for an October rate hike by the Federal Reserve help limit the downside.

BNB: Derivatives back bullish upside continuation

BNB, formerly known as Binance Coin, edges lower trading around $790 on Monday after posting three consecutive weekly gains. Rising Open Interest and positive funding rates suggest that bullish positioning is strengthening in the derivatives market.

Economics week ahead
In the U.S., the September ISM Services index is expected to ease modestly while continuing to signal expansion, with particular attention on whether price pressures remain elevated. In Canada, the labor market likely rebounded in September, although broader trends still point to a cooling pace of employment growth.
The Euro is near a one-year low: Inflation could trigger its rebound, not its fall

EUR/USD has fallen to its lowest level since May 2025. The pair hit 1.1312 on Wednesday and trades well below the January peak of 1.2082. The decline reflects a powerful combination of US Dollar strength, geopolitical uncertainty and renewed concerns about Europe's exposure to higher energy prices.