08/10/24

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On Tuesday, October 8, financial markets are adopting a cautious stance as investors prepare for a slew of key economic data releases. Among these is the NFIB Business Optimism Index for September and the RealClearMarkets/TIPP Economic Optimism Index for October, both of which are anticipated by the market. The US Bureau of Economic Analysis will also share Goods Trade Balance data for August. Additionally, several officials from the Federal Reserve are set to present their views later in the American trading session.

In China, the National Development and Reform Commission has indicated that the country is experiencing increasing downward pressure on its economy, citing the complexities of both internal and external factors affecting growth. Following a sharp decline in major US stock indexes on Monday, U.S. stock futures are trading slightly lower, reflecting a general sense of pessimism. The US Dollar Index is stable around 102.50, lacking a strong directional movement after a flat trading day.

Germany released positive data showing a 2.9% increase in Industrial Production for August, recovering from July’s contraction of 2.4%. This figure exceeded market expectations of 0.8% growth, yet the EUR/USD pair appears to be struggling to capitalize on this positive news, hovering just below the 1.1000 level.

The Reserve Bank of Australia discussed various scenarios for interest rate adjustments during its September meeting, considering options to lower, raise, or maintain current rates due to significant uncertainties in the economic landscape. In the wake of substantial losses on Monday, the AUD/USD pair continued to weaken during the Asian session, trading at its lowest point since mid-September, below 0.6730.

In Japan, the economy minister raised concerns regarding a recent dip in real wages, marking the first decline in three months. He emphasized the government’s commitment to creating conditions that support wage growth. However, the USD/JPY exchange rate has remained relatively stable, fluctuating around 148.00.

Meanwhile, GBP/USD has experienced a slight decline as risk aversion took hold, retreating below 1.3100. Gold prices continued their downward trend, registering losses for four consecutive days and trading under $2,640 as the European trading session progressed.