Markets rattled by another sell-off, US data eyed
Just when it looked like it was going to be a relatively stable trading day, another sell-off occurs.
The EURUSD made some modest gains overnight after beginning the session at $1.09314. The euro remained steady early before falling to a low of $1.09035 mid-session. It did not stay there for long as the pair started its march up shortly afterwards, eventually peaking at a high of $1.09633 late in the day. It is not far off those levels and is currently trading at $1.09581. The GBPUSD followed a similar path to the euro after opening the day at $1.22891. The pound declined early in the day, bottoming-out at $1.22257 mid-session, before rallying to a high of $1.23240. It has come off those highs and is now trading at $1.23019.
The woes continue for the Dow, enduring another sell-off overnight. The index opened at 26,600.73 and was flat in early trading. Mid-session saw the Dow begin its slide until it fell to a low of 25,973.54 late in the day. It has come off those lows and is now trading at 26,113.39. The Dax was once again weighed down by the Dow after opening at 12,255.33. The German index edged up to a high of 12,259.56 in the opening hour before remaining steady for a few hours. The decline started early in the day and finished late, with the Dax dropping to lows of 11,898.60 and then closing at 11,922.34.
The day ahead is packed with data, with the US again taking centre-stage. The US will be publishing ISM Non-Manufacturing PMI data later tonight in what will be a keenly watched number. It was the ISM Manufacturing PMI data released earlier in the week that started the sell-off in markets. The Non-Manufacturing PMI figure is expected to come in at 55.1, down from the 56.4 recorded at the last reading.
Other data published today includes:
Australia – Trade Balance
UK – Services PMI, MPC Member Silvana Tenreyro speaks
Europe – European, German and French Final Services PMIs, Italian & Spanish Services PMIs, European Retail Sales & PPI
US – Challenger Job Cuts, Unemployment Claims, Final Services PMI, Factory Orders, Natural Gas Storage, FOMC Members Randal Quarles and Richard Clarida speak
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