Analysts at Nomura noted the key US data overnight and reviews ISM manufacturing index, Construction spending and offered their US GDP Q3 tracker update.
Key Quotes:
"ISM manufacturing index: The ISM manufacturing index rose 2.0pp to 60.8 in September, from 58.8 in August, above expectations (Nomura: 58.0, Consensus: 58.1). Overall, the September report indicated modest improvement in activity despite the recent hurricanes. However, disruptions to supply chains were material and likely distorted the report.
Construction spending: Construction spending rebounded in August, increasing 0.5% m-o-m. However, July’s reading was revised downwards to a 1.2% m-o-m decline (previously 0.6% m-o-m decline). Private sector construction spending increased 0.4% m-o-m, with private residential increasing 0.4% and nonresidential 0.5%. Private home improvement spending increased 0.5% m-o-m in August, the fourth consecutive monthly increase. Private nonresidential construction spending rebounded in August after two months of declines. Public construction spending increased 0.7% in August, with strength in both residential (+1.1%) and nonresidential (+0.7%) construction. However, within public nonresidential construction spending, highway & street (-1.3%) and commercial (-5.6%) both continued to show weakness.
GDP tracking update: Private single-family construction expenditures were slightly weaker than our expectations, implying less residential investment in Q3. Moreover, weaker-than-expected state and local government construction slightly lowered our Q3 contribution from government. However, private nonresidential construction was stronger than our expectations, implying more investment in nonresidential structures in Q3. Altogether, we raised our GDP tracking estimate by 0.1pp to 2.5% q-o-q saar."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays below 1.1150 after upbeat US data
EUR/USD pulls away from the daily high it set near 1.1200 and trades below 1.1150 on Thursday. The upbeat data from the US helps the USD limit its losses but the improving risk mood allows the pair to hold its ground in the American session.
GBP/USD retreats below 1.3250 after BoE-inspired rally
GBP/USD loses its bullish momentum and retreats below 1.3250 after touching its highest level since March 2022 above 1.3300 with the immediate reaction to the BoE's decision to leave the policy rate unchanged at 5%. In the US, weekly Jobless Claims declined to 219K.
Gold pulls away from daily top, trades at around $2,570
Gold loses its traction and falls toward $2,570 after climbing above $2,590 during the European trading hours. The benchmark 10-year US Treasury bond yield rises toward 3.75% in the Fed aftermath, making it difficult for XAU/USD to push higher.
Bitcoin extends gains after Fed cut interest rate
Bitcoin extends recent gains and trades above $62,000 at the time of writing on Thursday, following a 2.4% increase the previous day after the Federal Reserve’s (Fed) dovish decision to cut interest rates by 50 basis points.
BoE expected to keep interest rate unchanged at 5% as price pressures persist
After a close call in August, the Bank of England’s September interest rate decision is keenly awaited for fresh cues on the bank’s future policy action and the pace of its bond sales.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.