US Leading Economic Index: First contraction since August 2016 - Wells Fargo

Matías Salord FXStreet

Analysts from Wells Fargo, explained that the Leading Economic Index (LEI) reversed course in September (-0.2%). They point out that is the first contraction since August of 2016, but the recent hurricanes are likely the culprit.

Key Quotes:

“The LEI decreased 0.2 percent in September, following 12 consecutive months of gains. The September weakness is likely the result of the temporary impact of the recent hurricanes that devastated Houston and Florida.”

“Four components contributed negatively to the index while the remaining six added to the topline figure. The source of weakness was largely contained in labor markets and residential construction, consistent with the hurricane impact.

“While the headline figure contracted, the September print represents the second highest reading for the index in its history.”

“ISM new orders added 0.19 percentage points to the topline figure, its largest contribution since March of this year. The interest rate spread added 0.12 percentage points while the stock market component added 0.06 percentage points. The mix of positively contributing hard data and market expectation-driven data is an encouraging sign.”

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

GBP/USD remains offered; bears target 1.3600

GBP/USD now leaves behind part of its recent recovery and revisits the low 1.3600s at the beginning of the week. Indeed, Cable trades with a mild downward bias amid decent gains in the Greenback as investors remain wary of upcoming US data releases and the Jackson Hole event.

EUR/USD slips back to 1.1660, daily lows

EUR/USD remains slightly offered and drops toward the 1.1660 zone to hit daily troughs on Monday. The pair’s decline follows a decent advance in the US Dollar while investors continue to closely follow developments from the US money market.

Gold poised to extend its bullish run

Gold surrenders part of its initial advance, although it keeps its bullish pace well and sound above the $4,600 mark per troy ounce on Monday. The precious metal’s move higher comes despite slight gains in the US Dollar and a modest pullback in US Treasury yields across the curve.

Here's what I learned trading meme coins

I’ve been trading cryptocurrencies for the past seven years, with meme coins becoming one of the most exciting and implacable parts of my experience. I love them because they represent internet culture and community sentiment, and, let’s be honest, extreme speculation. Newly launched meme coins were especially tempting: get in early enough, I thought, and a small bet could turn into a huge return.

Bessent’s presser in focus

Preview: Busy week ahead, with Bessent kicking this off today, with things wrapping up with Warsh at Jackson Hole. For a month that should have been a temporary period of ‘quiet’, we had anything but last week, with the bond market and tariffs front and centre.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.