Market Drivers; US Session

Shifting Focus: The US Labor Market Takes Center Stage
The US dollar maintained a relatively stable position on Tuesday, as market participants digested a slowdown in the rally of US Treasury yields. This cautious stance was further influenced by the impending US election and the anticipation of key economic data releases.

Key Economic Indicators to Watch

The upcoming days will be pivotal for the US economy, with several crucial data points scheduled for release:

• ADP Employment Change: This report provides a preliminary estimate of private-sector job growth, offering insights into the health of the labor market.
• Advanced Q3 GDP Growth Rate: This figure will shed light on the pace of economic growth during the third quarter.
• Pending Home Sales: This indicator measures signed contracts for existing home sales, providing clues about future housing market activity.
• EIA Weekly Crude Oil Inventory Report: This report will offer insights into US oil supply and demand dynamics.
These data points will play a significant role in shaping market sentiment and influencing the Federal Reserve’s monetary policy decisions.

Global Economic Outlook

Beyond the US, the global economic landscape remains uncertain. In the Eurozone, investors will be closely watching the release of Germany’s preliminary inflation rate and the EU’s flash Q3 GDP growth rate. These figures will provide valuable information about the region’s economic recovery and inflationary pressures.
In the UK, the upcoming Autumn Budget will be a key event, as it could have significant implications for the British economy and the GBP/USD exchange rate.

Commodity Markets

Commodity markets were mixed, with gold prices hitting a new all-time high above $2,770 per ounce. This surge was driven by persistent geopolitical tensions and expectations of further monetary easing by major central banks. In contrast, oil prices declined as concerns about global economic growth and potential diplomatic solutions to the crisis in Lebanon weighed on the market.

As the global economy continues to navigate a complex landscape, investors should remain vigilant and closely monitor key economic indicators and geopolitical events.