The DXY Index consolidates by 0.1%, trading around 104.40 after signs that the recent rally may have stretched the greenback.
Treasury yields fell across the curve ahead of US jobless claims and PMI data due later today. With hurricane Milton during the previous period, we expect figures to be impacted by the event.
Jobless claims data is predicted at 242K, compared to 241K previously. Composite PMI is expected at 53.8 compared to 54.0 previously, manufacturing PMI at 47.5 compared to 47.3 previously, and services PMI at 55 compared to 55.2 previously.
EURUSD trades this morning below 1.08 ahead of PMIs.
Expectations for the eurozone PMIs are slightly above previous figures, but little change is expected. Services PMI is expected at 51.5, above the key 50 mark, but manufacturing is predicted at 45.1, lowering the composite PMI amount to an expected 49.7.
GBPUSD started the day at 1.2930 ahead of PMI data later today.
Composite PMI is expected at 52.5, compared to 52.6 previously. Manufacturing and services PMI is expected to stay flat, coming in at 51.5 and 52.4 respectively.
World News
Today is the last day of the Brics summit, where Bric member countries have discussed the idea of alternative international payment systems in a move to de-dollarize the world economy.
During the summit, Russian President Vladimir Putin stated “The dollar is being used as a weapon.” Currently, he said that 95% of trade between Russia and China is conducted using rubles and yuan. However, becoming less reliant on the US dollar would unnerve some Bric members, notably Brazil and India, as they look to avoid the club becoming solely pro-Chinese and anti-western.
