Americas TPnews wrap: PCE inflation softens but USD still rips into month-end

  • Forex news for North American trading on Sep 29, 2023
  • Saturday, 30 September 2023 | 3:29 AM

Markets:

  • Gold down $16 to $1848
  • WTI crude oil down 78-cents to $90.93
  • US 10-year yields down 0.2 bps to 4.57%
  • S&P 500 down 12 points to 4288
  • AUD leads, CAD lags

The quarter concluded with a touch of excitement as the US dollar surged, recovering earlier losses experienced during European and Asian trading sessions. In certain instances, it even reached new peak levels. Notably, the USD/CAD currency pair demonstrated remarkable strength, largely driven by a reversal in oil prices, which ultimately resulted in a flat performance for the week.

Once again, Treasury yields reversed their early decline, impacting equity markets, which ultimately closed the day with minimal changes following a robust start.

The fluctuations in the market were primarily influenced by quarter-end shifts rather than underlying economic fundamentals. This was evident as the inflation figures in the PCE report came in slightly lower, and Williams adopted a more dovish stance.

Gold faced significant downward pressure, reaching its lowest point since mid-March.

The US dollar, which had initially exhibited weakness during North American trading, staged a strong and widespread recovery, ultimately ending the day with marginal fluctuations. This wraps up trading for the week, month, and quarter. Stay tuned for the October seasonals, which will be available over the weekend.

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