October 4, 2017
As the North American traders enter for the day, the JPY is the strongest, while the USD is the weakest. However, the trading activity is relatively light once again.
At 8:15/1215 GMT we will get the ADP employment report which may give the market a "goose". The expectation is for a gain of 135K vs 237K last month. On Friday the US Non-Farm Payroll is expected to show a 80K increase after a 156K rise. The two are not really a perfect track of each other but a relative strength or weakness can be inferred from the data. This month will be particularly difficult to interpret as a result of the impact from hurricanes.
The ranges below are showing the relative inactivity. The ranges in the bottom chart are all well below their 22 day averages. There is room to roam, but we are looking for the catalyst. In addition to the ADP report, at 9:45 AM ET/1345 gmt, the Markit services and composite PMI data will be released and at 10 AM/1400 GMT, the ISM Non Mfg index will be released (55.5 est vs 55.3 last month). Oil inventory data will also be released.
IN other markets:
- Spot gold is up $9.46 or 0.73% to $1281
- WTI crude traded below $50 to $49.91. The high is $50.34. We trade at $50.29 currently down -$0.13
- US yields are lower: 2 year 1.4551, down 1.6 bp. 5 year 1.8981%, -1.8 bp. 10 year 2.305%, down -1.8 bp. 30 year 2.8514%, down -1.3 bp
- US stock futures are down in pre-market trading: S&P futures are down -2.25 points. Nasdaq futures are down -9.25 points. and Dow Futures are down -18 points
- Europe stocks are mixed; Spain is down -2.44% as Catalan remains a big concern. German Dax is up 0.1%. France Cac is down -0.4%. UK FTSe is unchanged
