Market Insight 03-07-2024

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  • Market Insight 03-07-2024


The USD weakened following remarks from Fed Chair Powell in Sintra, even though JOLTS job openings exceeded expectations. Powell noted that the “Last Inflation Reading Suggests Disinflation Path” and that “Unexpected Labour Weakening Could Also Prompt Reaction.” While CPI fell to 2.5% as anticipated, the core figure stayed at 2.9% instead of the expected drop to 2.8%. Market response was subdued ahead of the second round of election votes this weekend.


  • None today.

Market Insight:

A busy day is expected with the release of services PMI numbers from the UK, EU, and the US, alongside ADP payroll figures and the minutes from the latest Fed meeting. Yesterday’s JOLTS numbers were surprisingly positive, which might indicate a similar trend for today’s ADP figures. Services PMIs are anticipated to remain in expansion territory, and the Fed minutes may have limited impact given Powell’s recent comments. Unless US data shows a significant improvement, the USD is likely to remain under pressure due to Powell’s disinflation remarks. In France, over 200 candidates have withdrawn from a three-way runoff, a setback for Marine Le Pen’s National Rally party.