Sample Category Title

Eurozone CPI rose from 1.7% yoy to 2.0% yoy in October, above expectation of 1.9% yoy. CPI core (energy, food, alcohol & tobacco) was unchanged at 2.7% yoy, above expectation of 2.6% yoy.

Looking at the main components, services is expected to have the highest annual rate in October (3.9%, stable compared with September), followed by food, alcohol & tobacco (2.9%, compared with 2.4% in September), non-energy industrial goods (0.5%, compared with 0.4% in September) and energy (-4.6%, compared with -6.1% in September).

Full Eurozone CPI release here.

Navigating the complex waves of the financial markets requires an astute understanding of various economic indicators. Among them, the nonfarm payroll report stands out as a pivotal monthly metric that can significantly sway financial markets. This article demystifies the intricacies of this influential report, walking through what to know before trading it.

Nonfarm Payroll Definition

The nonfarm payroll (NFP) is a key economic barometer that tallies the number of employed individuals in the US, excluding the agricultural sector. Besides the farm workers, government, private household, and nonprofit organisation workers are not included.

This nonfarm payroll, meaning the workforce in industries like manufacturing, services, construction, and goods, reflects the health of corporate America and, by extension, the US economy. It’s one of the components of the Employment Situation report released on the first Friday of every month by the US Bureau of Labor Statistics. Nonfarm employment change data is released along with unemployment rate and average hourly earnings data.

Given its encompassing nature, the NFP and its importance to economic vitality makes it a beacon for investors and traders, who see the data as a projection of economic trends and an influencer of the Federal Reserve's monetary policy. Fluctuations in NFP numbers can cause significant movements in currency, bond, and stock markets.

The Nonfarm Payroll Report and Market Volatility

The release of NFP figures is a major event on the economic calendar, often triggering heightened market volatility. As nonfarm payroll news hits the wires, traders and investors brace for potential rapid swings in asset prices, particularly in the forex market. The immediate aftermath can see significant fluctuations in currency pairs with the US dollar. The anticipation and reaction to the nonfarm payroll in forex markets exemplify the weight this report carries.

Impact of NFP on USD Pairs

The nonfarm payroll report has a profound influence on USD pairs. When the NFP data is released, traders immediately compare the figures to market expectations, leading to price adjustments based on how well the actual data aligns with analyst forecasts. The broader trend of NFP data is also important, but it generally takes a backseat compared to actual vs expected figures.

For example, if the report indicates stronger-than-expected job growth, the US dollar typically strengthens, especially against currencies like the euro, yen, and pound. A robust employment outlook suggests economic health, potentially raising expectations for tighter monetary policy from the Federal Reserve.

On the flip side, if the NFP numbers fall short of expectations, the US dollar may weaken, particularly if the data points to economic slowdown or stagnation. In such cases, currencies like the euro or Japanese yen might rise against the dollar, as traders speculate that the Federal Reserve could delay interest rate hikes or even consider easing measures to boost the economy.

The NFP report also reverberates through other major currency markets. For instance, currencies in economies closely tied to US trade and investment—such as the Canadian dollar or Mexican peso—may experience volatility as changes in US employment data often reflect shifts in economic demand for their goods and services.

The Role of Employment Rates and Wages in Market Sentiment

Within the US nonfarm payroll release, two key indicators—unemployment rates and average hourly earnings (month-on-month)—are pivotal in influencing market sentiment.

Unemployment Rates

The unemployment rate measures the percentage of the labour force actively seeking employment but currently without a job. A falling unemployment rate generally signals that more people are finding work, a positive indicator for economic growth.

As a result, equities may rally, and the US dollar often strengthens, particularly if the data beats expectations. Traders interpret lower unemployment as a sign of economic resilience, which could influence the Federal Reserve to maintain or tighten monetary policy, further boosting the dollar.

Conversely, a rising unemployment rate may signal economic weakness, spurring concerns over reduced consumer spending and slowing economic activity. This could lead investors to shift towards so-called safer assets like bonds or gold.

In the forex market, a rising unemployment rate tends to weaken the US dollar as it lowers expectations for interest rate hikes and prompts speculation about potential stimulus or rate cuts by the Federal Reserve, further pressuring the dollar and encouraging risk-off sentiment.

Average Hourly Earnings

Alongside unemployment, average hourly earnings (m/m) is another key metric that traders closely monitor. This indicator tracks changes in wages from one month to the next and offers insight into inflationary trends.

When average hourly earnings rise, it can indicate that workers have more disposable income, which can increase consumer spending. Higher wages often fuel concerns about inflation, prompting markets to anticipate interest rate hikes to combat potential overheating in the economy. This expectation typically strengthens the US dollar.

However, if average hourly earnings come in below expectations or show signs of stagnation, markets may interpret this as a sign of weaker inflationary pressures. In such cases, traders may anticipate a more dovish stance from the Federal Reserve, potentially delaying or even reversing interest rate hikes. This can weigh on the US dollar and boost equities.

Execution Tactics for the Nonfarm Payroll Report Release

On the day the NFP data is released, specific execution tactics tailored to the NFP's unique market footprint can add substantial value. Due to the potential for rapid price movements, traders narrow their focus to liquid markets, like EUR/USD, USD/JPY, and GBP/USD, to facilitate quick entries and exits. They’ll typically trade on the 1m, 2m, 5m, or 15m charts and often require platforms built with speed in mind, like FXOpen’s advanced TickTrader platform.

Nonfarm payroll trading involves comparing the actual data against market expectations. The outcomes can typically be categorised as follows, with each scenario influencing forex markets differently:

• As Expected: Currency values may experience minimal immediate impact if the report aligns with analyst forecasts, as the anticipated news is already priced into the market.
• Better than Expected: A robust report can boost the US dollar, as higher employment rates suggest economic strength, potentially leading to rising interest rates.
• Worse than Expected: Conversely, weak employment figures can devalue the US dollar, reflecting economic concerns and pressuring policymakers towards accommodative measures.

Given the volatility, many traders prefer limit orders to manage slippage, potentially ensuring they enter the market at predetermined points. Lastly, spreads can widen substantially, inadvertently triggering a stop loss. Some traders choose to set a wider stop loss than normal for this reason.

Traders usually monitor not just the headline number but also revisions of previous reports and associated metrics, such as unemployment rate and wage growth, which can influence market sentiment. High-speed news feeds and an economic calendar containing nonfarm payroll dates are employed to access the numbers in real-time, enabling immediate analysis.

Analysing Unemployment and Wage Growth Numbers Together with NFP

When trading around the nonfarm payroll release, it's essential to look beyond the headline number and integrate unemployment and wage growth data into your analysis. The NFP number alone can drive initial market reactions, but combining it with unemployment and wage growth figures provides a more nuanced view of the economy’s direction.

Traders start by comparing the trends across these three metrics. For example, if the NFP report shows strong job creation but unemployment remains stubbornly high, this could indicate that the economy is absorbing a larger labour force, potentially due to discouraged workers returning to job-seeking. This dynamic might lead to a more muted market response, as the overall labour market picture is mixed.

On the other hand, rising average hourly earnings alongside strong US nonfarm payrolls often signals not just employment growth but increasing inflationary pressure. If wages grow faster than expected, especially when paired with a low unemployment rate, it could indicate that labour shortages are driving up pay, raising inflation risks and making Federal Reserve action more likely. In this scenario, traders might anticipate a stronger US dollar, as higher interest rates become more probable.

To streamline your analysis during nonfarm payrolls, consider the following approach:

• Aligning Expectations: Traders compare actual numbers for NFP, unemployment, and wage growth with analyst forecasts. If NFP and wages grow but the unemployment rate falls, the market is likely to favour USD strength, while mixed results can trigger choppier price action as traders digest the implications.
• Gauging Momentum: Looking at the broader trend can provide further insight. If unemployment has been trending down and wages are steadily increasing (i.e. an expanding economy), the overall market sentiment may remain bullish even if NFP slightly underperforms. Conversely, if there’s a rising unemployment rate despite decent NFP growth, it could signal that the economy is slowing down.
• Assessing Policy Impact: It’s good to know how the Federal Reserve might interpret the combined data. For instance, moderate NFP growth with stagnant wage numbers may not trigger immediate policy shifts, allowing for more accommodative conditions in the near term. However, strong wage growth and low unemployment alongside robust NFP numbers are more likely to prompt a hawkish response.

Trading the NFP: A Strategy

Traders often consider analytical nonfarm payroll predictions to calibrate their strategies. However, an approach to take advantage of whichever direction the market takes uses an OCO (One Cancels the Other) order. This order straddles the current price range just before the report is released. Such a strategy prepares the trader for movement in either direction, as the NFP release can generate a significant breakout from the prevailing range.

According to theory, the strategy unfolds:

• An OCO order is placed with one order above the current price range and another below it. This setup positions the trader to catch the initial surge regardless of its direction.
• Stop losses might be set on the opposite side of the pre-report range to potentially manage risk.
• Profit targets might be established within a four-hour window post-release, aiming for a favourable risk/reward ratio, such as 1:3.
• Alternatively, a trailing stop may be utilised, adjusting above or below newly formed swing points to protect potential returns as a trend develops.

Such strategies allow traders to potentially capitalise on the new trend direction ushered in by the NFP data.

Risk Management When Trading NFP

Trading the NFP report often brings heightened volatility, making risk management crucial for protecting capital during these market swings. Below are some key risk management practices often employed when trading the NFP:

• Awareness of Spreads: Spreads can widen substantially during NFP releases. This can trigger even wide stop losses; tight stop losses can suffer extreme slippage, where the stop loss execution price differs substantially from the desired price.
• Conservative Position Sizing: Some traders take smaller positions when entering pre- and post-NFP release. The increased volatility when the report is released can lead to slippage and greater-than-anticipated losses as a consequence. Likewise, post-release conditions can also be unpredictable if data is mixed.
• Avoiding Overtrading: Aim to be selective with trades to avoid chasing price swings in a highly reactive market. It might be preferable to wait for a clear direction to emerge before entering a trade.

Comparative Analysis with Other Economic Indicators

The NFP report serves as a primary mover in the forex market, but its full value is best understood in concert with other economic indicators. Investors compare its findings with the Consumer Confidence Index for insights into spending trends, as employment health can influence consumer optimism and spending behaviours.

Likewise, juxtaposing NFP data against the Gross Domestic Product (GDP) figures provides a more complete narrative of the economic cycle since higher employment typically signals increased production and economic growth. Additionally, assessing the Consumer Price Index (CPI) and Producer Price Index (PPI) alongside NFP numbers can offer insight into inflationary pressures; strong employment data may point to higher inflation, a significant factor in central bank policy decisions.

The Bottom Line

In closing, learning how to trade nonfarm payroll data today may sharpen your market acumen and create exciting trading opportunities in the future. For those ready to apply these insights when NFP data is released, opening an FXOpen account provides access to over 700 markets, high-speed trade execution, tight spreads from 0.0 pips, and low commissions from $1.50. Happy trading!

FAQ

What Is NFP and How Does It Work?

The NFP meaning refers to the nonfarm payroll report, data that measures the number of jobs added in the US economy, excluding the agricultural sector. Released on the first Friday of every month by the US Bureau of Labor Statistics, the NFP is a key indicator of economic health, affecting currency, bond, and stock markets.

How Does Nonfarm Payroll Affect the Stock Market?

NFP data can drive stock market volatility. Strong job growth signals economic strength, often boosting equities. Conversely, weak NFP figures may indicate a slowing economy, leading to stock market declines as investors anticipate weaker corporate earnings.

What Happens When NFP Increases?

An NFP increase suggests robust job growth, typically strengthening the US dollar and stock markets, as investors expect economic expansion and potentially tighter monetary policy from the Federal Reserve.

Why Is Nonfarm Payroll So Important?

An NFP report is crucial because it reflects the overall health of the US labour market and economy. Traders and investors use the data to gauge economic trends, determine Federal Reserve actions, and understand where markets are headed.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

• AUDUSD is trading sideways, a tad above 0.6547
• The downtrend from the September 30 high remains in place
• Momentum indicators are mostly bearish

AUDUSD is trading sideways today, a tad above 0.6547. The bearish trend from the September 30 peak remains firmly in place, and, quite interestingly, AUDUSD bulls have failed, up to now, to stage an upleg and temporarily interrupt the ongoing selloff. The market’s focus is on the US presidential election although this week’s US data could also materially impact the dollar’s performance.

The momentum indicators are bearish at this juncture. In more detail, the Average Directional Movement Index (ADX) is edging higher and thus signalling a strong bearish trend in AUDUSD, while the RSI is comfortably trading below its 50-midpoint. Interestingly, the stochastic oscillator is hovering inside its oversold territory (OS), but it has failed, up to now, to climb above its moving average (MA). A move above both its MA and OS could be the signal the bulls have been waiting for in order to finally stage a small rally.

Should the bears remain hungry, they could try to break below the 61.8% Fibonacci retracement level of the October 13, 2022 – February 2, 2023 uptrend at 0.6547. The door could then open for a move towards the March 31, 2023 low at 0.6458, with the next plausible target being the September 6, 2023 low at 0.6536.

On the other hand, the bulls are desperate for a small upleg. They could firstly try to keep AUDUSD above the 0.6547 level and then gradually push it higher towards the 200-day simple moving average (SMA) at 0.6676. If successful, they could then test the resistance set by the busier 0.6663-0.6707 area, which is populated by the July 14, 2022 low and the 100-day SMA.

To sum up, AUDUSD bears remain in control and potentially in a strong position for next big US events starting with Friday’s job report. 

Following BoJ’s decision to maintain its current interest rate, Governor Kazuo Ueda said at the press conference that the central bank has "no preset idea" on the timing of its next rate increase. He added that each policy decision will be based on a thorough assessment of the latest economic data and outlook revisions.

Ueda highlighted promising signs from the latest Tokyo CPI data, observing that the "pass-through of rising wages on services prices is broadening." He added that BoJ will closely monitor whether this trend spreads across the nation.

Domestically, wages and prices are generally moving in line with BoJ forecasts, and recent changes in companies' wage- and price-setting behaviors over the past two years point to a potential structural shift. However, Ueda acknowledged that it’s uncertain whether this shift will gain momentum or fade over time.

Ueda also pointed out the importance of currency volatility and commodity prices, as these factors significantly impact domestic import prices.

While recent political developments in Japan are unlikely to alter BoJ’s price forecasts, Ueda noted that substantial policy changes could prompt revisions as needed.

Daily Pivots: (S1) 1.0814; (P) 1.0842; (R1) 1.0885; More...

Intraday bias in EUR/USD remains neutral first, and further decline is expected with 1.0871 resistance intact. On the downside, break of 1.0760 will resume the fall from 1.1213 to 61.8% retracement of 1.0447 to 1.1213 at 1.0740. Firm break there will target 1.0601 support next. However, considering bullish convergence condition in 4H MACD, break of 1.0871 will indicate short term bottoming, and turn bias back to the upside for 55 D EMA (now at 1.0945).

In the bigger picture, price actions from 1.1274 (2023 high) are seen as a consolidation pattern to up trend from 0.9534 (2022 low), with fall from 1.1213 as the third leg. Downside should be contained by 50% retracement of 0.9534 (2022 low) to 1.1274 at 1.0404, to bring up trend resumption at a later stage.

Daily Pivots: (S1) 152.80; (P) 153.33; (R1) 153.92; More...

Intraday bias in USD/JPY remains neutral as consolidation from 153.87 is still extending. Deeper retreat cannot be ruled out but further rally is expected as long as 55 D EMA (now at 148.82) holds. Sustained trading above 61.8% retracement of 161.94 to 139.57 at 153.39 will pave the way to retest 161.94 high.

In the bigger picture, price actions from 161.94 are seen as a corrective pattern to rise from 102.58 (2021 low). The range of medium term consolidation should be set between 38.2% retracement of 102.58 to 161.94 at 139.26 and 161.94. Nevertheless, sustained break of 139.26 would open up deeper medium term decline to 61.8% retracement at 125.25.

Daily Pivots: (S1) 1.2919; (P) 1.2981; (R1) 1.3025; More...

GBP/USD is still bounded in consolidation above 1.2906 and intraday bias remains neutral. Further decline is expected as long as 1.3070 minor resistance holds. Below 1.2906 will target 61.8% retracement of 1.2298 to 1.3433 at 1.2732. However, considering bearish divergence condition in 4H MACD, firm break 1.3070 resistance will indicate short term bottoming, and turn bias back to the upside for stronger rebound.

In the bigger picture, considering mildly bearish divergence condition in D MACD, a medium term top is likely in place at 1.3433 already. Price actions from there are seen as correction to whole up trend from 1.0351 (2022 low). Deeper decline would be seen to 38.2% retracement of 1.0351 to 1.3433 at 1.2256, which is close to 1.2298 structural support. Strong support should be seen there to bring rebound.

Daily Pivots: (S1) 0.8646; (P) 0.8672; (R1) 0.8700; More…

Intraday bias in USD/CHF remains neutral as consolidation continues below 0.8699 temporary top. Further rally remains in favor as long as 55 D EMA (now at 0.8609) holds. On the upside, decisive break of 38.2% retracement of 0.9223 to 0.8374 at 0.8698 will argue that fall from 0.9223 has completed after defending 0.8332 low. Further rally should then be seen to 61.8% retracement at 0.8899 next.

In the bigger picture, price actions from 0.8332 (2023 low) are currently seen as a medium term corrective pattern, with fall from 0.9223 as the second leg. Strong support could be seen from 0.8332 to bring rebound. Yet, overall outlook will continue to stay bearish as long as 0.9243 resistance holds. Firm break of 0.8332, however, will resume larger down trend from 1.0146 (2022 high).

Markets

“Overall borrowing between 2024-25 and 2028-29 is higher than the March forecast by £142.2 billion, an average of £28.4 billion a year. This represents one of the largest fiscal loosenings of any fiscal event in recent decades.” It’s the UK Office for Budget Responsibility’s summary of Chancellor Reeves autumn Budget yesterday. UK gilts initially stomached the Budget extremely well, with the lack of Truss/Kwarteng-like surprises causing yield drops of >10 bps across the curve compared to Tuesday’s close. Things took a turn after the OBR dropped its analysis with a massive >20 bps comeback from the intraday lows. Yields eventually closed 4.1 (30-yr) to 6 bps (2-yr) higher. Markets trimmed bets for BoE easing to <100 bps of cuts in the year ahead. EUR/GBP rebounded from the low 0.83 to 0.8375 amid significant Bund underperformance. Yields rose +/-12 bps at the front in the wake of (much) higher-than-expected European growth and inflation reaccelerating quicker than anticipated. Readings from several national member states yesterday suggest a faster return of the European figure back above 2% from the 1.7% currently. Risks to analysts’ estimate of 1.9% for the October outcome released later today are clearly skewed to the upside. US yields rose up to 8.5-9.4 bps (2-yr, 3-yr) on a consensus-crushing ADP job report, solid, consumer-driven GDP growth and strong housing data. Narrowing interest rate differentials nevertheless gave the euro the upper hand against the dollar. EUR/USD jumped to 1.0856. We think the downside around 1.076-1.0778 is better protected from the euro’s perspective. The eco calendar this week still has something in offer for the USD though. PCE inflation for September today is a non-event after yesterday’s Q3 release. But the Employment Cost Index (Q3) and weekly jobless claims serve as wildcards. The October payrolls and manufacturing ISM are due on Friday. We think material upside surprises are needed for dollar strength to have technical implications with the US elections and Fed policy meeting next week drawing close. The US 2-yr and 10-yr are trading around first resistance of 4.2% and 4.3% respectively (38.2% and 50% recovery on the 2023-2024 high-to-low).

News & Views

The Bank of Japan delivered the much-anticipated status quo this morning, keeping the key policy rate level at 0.25%. Updated growth and inflation forecasts barely changed compared with the July update. The BoJ plots a 0.6%-1.1% (from 1%)-1% growth path for fiscal years 2024-2026. Core CPI is expected to average 2.5%-1.9% (from 2.1%)-1.9% over that same time horizon. The BoJ cited a recent decline in oil prices as main reason for the FY2025 revision. The central bank sticks to the view that inflation risks are tilted on the upside. JPY-weakness is an (unmentioned) reason for concern, stoking import prices. One of the reasons why the BoJ didn’t commit to another rate hike (yet) is that it pays attention to the future course of overseas economies, particularly the US’. Governor Ueda holds a press conference later today. USD/JPY trades a tad softer this morning, sliding from 153.50 to 152.80 currently.

Czech National Bank vice-governor Zamrazilova is the first to openly suggest she might opt for a pause as the CNB’s rate cut cycle slowly draws to an end. The policy rate currently stands at 4.25% compared with an estimated neutral rate of at least 3.5%. Zamrazilova still sees room for rates to decrease further, but she’s evaluating how to spread those rate cuts in time. She added that risks to fulfilling the inflation target next year are prevailing at the moment and that’s a reason for caution. Latest eco data suggest that household spending was stronger than in H1 2024 and will probably accelerate further next year, helped by growing real wages. The worsening global outlook nevertheless suggest a downward growth revision at next week’s policy meeting. Money markets discount a 25 bps rate cut, but Zamrazilova’s comments suggests that a pause is possible in December. EUR/CZK continues to trade near this year’s weakest levels (25.40 compared to 25.53 YTD high).

European and US markets nosedived yesterday on the back of ‘good news is bad news’ and the futures hint at a bearish start to Thursday’s session.

First, Spain, France and Germany revealed better-than-expected growth numbers in Q3. Germany even eked out an unexpectedly positive figure, which certainly helped – I wouldn’t say ‘to improve’ the mood but – to prevent sentiment from getting worse in the midst of a jungle of bad economic news, there. VW posted its least profitable quarter since the pandemic but said that they could avoid factory closures IF the workers accepted a 10% decrease to their salaries and the German unemployment change came in almost double the expectations, but seeing the German economy eke out that 0.2% advance in Q3 was a good surprise.

Now, the encouraging GDP figures came in with a cost: inflation in Spain and Germany came in higher than expected. Inflation in Germany crossed past the European Central Bank’s (ECB) 2% target and reached 2.4% in October.

The aggregate CPI update for Eurozone, due this morning, is expected to brush up against the 2% target. The combination of better-than-expected growth and higher-than-expected inflation weighs on accelerated rate cut expectations from the ECB. And the latter is positive for the euro. This is why the EURUSD tested the 1.0870 resistance, which matches the minor 23.6% Fibonacci retracement on the September to October selloff and the 200-DMA, but couldn’t clear it.

And the reason why it couldn’t clear it is because mixed data came in from the US. There, the GDP update came in slightly softer than expected, at 2.8% versus 3% printed previously, but consumer spending jumped from 2.8% to 3.7% defying the rising credit card debt and delinquencies, and more importantly, PCE prices fell to 1.5%, and core PCE prices fell less than expected but printed 2.20% - which now is very close to the Federal Reserve’s (Fed) 2% policy target. The September core PCE index is due today and is expected to show a further slowdown as well.

Soft landing: Achieved?

With the current data that we have in hand, some investors now argue that the Fed already achieved the soft landing that it was dreaming of. As such, the US dollar was weaker yesterday because the softening price pressures could allow the Fed to continue its rate cuts, but the downside remained limited because the data suggests that the cuts could be moderated. The ADP report showed yesterday that the US economy added 233K new private jobs last month, more than the double of 110K expected by analysts and was stronger than the number printed a month earlier. Of course, Friday’s official data will say the last word but Friday’s figures could also bring some positive surprises if the Boeing strike and hurricanes had a lighter than expected impact on the numbers. We will see.

For now, the US dollar remains bid despite yesterday’s weakness, the 2-year yield spiked higher – as the Fed doves scaled back their Fed cut bets. A 25bp cut at next week’s FOMC meeting remains on cards. The probability assessed to that is around 96%. But the Fed is not seen repeating the 50bp cut anytime soon.

Budget was ...ok

In the UK, the budget day couldn’t give the pound the energy it needed to clear the 1.30 offers. The announcement went as smoothly as it possibly could – given the amplitude of the bad news. Reeves said that the country will raise taxes by £40bn pounds to boost spending on public services. The UK also announced earlier that they would boost gilt sales by almost £20bn this fiscal year. But the spending would be less than expected by the market. That brilliant management of expectations helped traders keep their nerves together. The UK’s 10-year yield spiked to 4.40% but the selloff in sterling remained contained as the Bank of England’s (BoE) hopes of seeing further inflation easing in the UK went up in smoke as increased spending pressures are now knocking on the door.

China and Japan

China posted a small but unexpected expansion in its manufacturing sector in October, a piece of news that may have help crude oil extend yesterday’s recovery, and the Bank of Japan (BoJ) maintained its policy unchanged at today’s meeting, as expected, and Governor Ueda pointed out concerns regarding the increasingly uncertain global economic outlook. But the board ‘remains committed to further rate increases if economic and price data align with its forecasts’ and that line capped the upside in the USDJPY limited, and gave some strength to the yen.

Earnings update

Microsoft and Meta released their Q3 earnings yesterday, after the bell, and the results were good. Microsoft posted a better-than-expected quarterly revenue growth, fueled by its cloud computing business and Office – which integrates AI capabilities. But the company projected slower quarterly growth in cloud revenue, highlighting its challenge in bringing data centers online quickly enough to meet the rising demand for AI services. Shares dropped 3.7% in the afterhours trading.

Similar with Meta. The company posted strong quarterly results, improved ad revenue thanks to AI, but the weaker than expected user number in Q3, and the plans to spend more on AI didn’t please investors. The shares fell 3% in the afterhours trading.

Today, it’s Apple and Amazon’s turn to go to the earnings confessional. And they should not only meet and beat expectations but came in with a solid forecast to keep enthusiasm going.