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The main indices in the USA are losing ground at the end of the week, despite a higher opening at the start of the session. The US500 is trading 0.10% lower, and the US100 is down a bit more at 0.30%.
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The market was initially driven by hopes of ending the rate hike cycle following weaker labor market data. However, a later release of ISM data showed quite a large disparity. ISM for both prices and employment came out significantly higher than forecasts.
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However, today's macro data publications in the USA, the likelihood of maintaining interest rates at the current level has increased.
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FOMC member Mester stated that the job market is still strong but is approaching the equilibrium level. She pointed out that the unemployment rate of 3.8% is still low and emphasized that inflation remains too high. Mester suggests that future policy will depend on data, focusing on the balance between overtightening and undertightening.
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The NFP report showed that a total of 187,000 jobs were added in August, although data for June and July were revised downward by as much as 110,000.
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The unemployment rate unexpectedly rose to 3.8% from an expected 3.5%.
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The ISM index, released at 4:00 PM, showed a ninth consecutive month of contraction in the manufacturing sector.
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The exchange rate of the main currency pair fell below 1.08 USD, which could lead to a move toward support at 1.0750 next week.
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The dollar (USD) strengthened today by over 0.5% against the euro (EUR), but also by 0.6% against the pound (GBP) and almost 0.7% against the Canadian dollar (CAD).
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Gold prices paused their growth at the upper limit of the declining channel in the D1 interval.
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Oil had a solid session; WTI oil prices surpassed the highs of August 10.
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The end of the week brought a decline in the cryptocurrency market, which did not capitalize on the gains triggered by Grayscale's win against the SEC.
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Bitcoin recently bounced off resistance at the 28,000 USD level and fell today below 25,500 USD. Breaking below 25,000 USD could lead to an acceleration of the decline and even momentary panic.
The dollar index (USDIDX) has climbed into the regions of late August highs. Source: xStation5
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