USD outlook hinges on key economic data next week, with NFP report and BoJ meeting

From Investing.com: 2024-10-25 16:15:00

The Federal Reserve is once again sounding hawkish after strong US economic indicators post-September rate cut. Next week’s key data will shed light on whether another rate cut is likely. GDP, consumer confidence index, and job openings are on tap.

Inflation measures diverge after mixed CPI and PCE readings. Personal income, consumption, and job data on the horizon for policymakers to evaluate. PCE index, unemployment figures, and hourly earnings reveal sector specific clues.

NFP report in focus for Friday, showing a drastic slowdown in job creation for October. ISM manufacturing PMI expected to improve but soft payrolls may steer Fed to a more dovish approach. Unemployment rate and wage data crucial to market sentiment.

US dollar’s rebound hinges on economic indicators- a cooling economy could trigger rate cut bets and drive the dollar higher. Positive earnings from tech giants might help steer markets. The Bank of Japan is expected to maintain rates, despite policymakers signaling intentions to raise rates in 2024.

Euro faces pressure against the dollar as GDP growth slows and inflation edges up. Eurozone economy expected to grow 0.2% in Q3. CPI readings may influence ECB’s rate cut decisions. Strong data could strengthen Euro, while disappointing numbers may trigger cut expectations.



Read more at Investing.com: Week Ahead – A Decisive Week for USD with NFP and More; BoJ Meets