Log in to our mid-week North American Markets overview, where we examine the current themes in North America and provide an overview of indices and currency performances.
With the US government finally reopening its doors, markets are bracing for an immediate data deluge after months of flying blind.
The Bureau of Labor Statistics (BLS) is scrambling to clear the backlog, with the delayed September Non-Farm Payrolls (NFP) set to drop tomorrow, Thursday the 20th, followed by the release of PPI data on the 25th.
Adding to the high-stakes environment, weekly jobless claims are also making a comeback tomorrow morning.
While this influx of information is a gift to a Federal Reserve starved for clarity, it injects a fresh dose of anxiety into the market: will the data validate the “soft landing” or reveal deeper cracks?
Traders are left questioning if a December rate cut is really still on the table given the new uncertainty – The freshly released FOMC Minutes might just have given an answer to that, saying that “it would likely be appropriate to keep the target range unchanged for the rest of the year.” You can access the report right here.
Speaking of anxiety, the broader market is struggling to find its footing.
The AI boom appears to be getting out of breath, and renewed hawkish commentary from Fed officials is putting a firm lid on ecstatic risk-asset rallies.
On the geopolitical stage, the US President is “playing chess” again, with mediators actively trying to arrange a resolution to the Ukraine-Russia war—potentially involving high-stakes meetings—which has triggered aggressive moves in commodities and fueled further confidence in the US Dollar.
The Greenback is loving the chaos, pushing back towards the psychological 100.00 level, while the Canadian Dollar (CAD) is also managing to get back on track.
The emerging narrative of 2025 flows changing could indeed be a booster for North American currencies, but the final verdict will heavily depend on the reality revealed by upcoming data releases.
