FX Careers

General Market Analysis | 04 October 2023

Stocks Smashed Again on Strong Data – Nasdaq Down 2%

US stock markets took another hit yesterday after the first jobs data of the week confirmed Fed thinking that the employment market remains strong. The Nasdaq dropped nearly 2%, closing down 1.9% on the day, the S&P lost 1.4% and the Dow closed 1.3% in the red to turn negative on the year. The JOLTS job openings number came out higher than expected and this sparked aggressive moves in the market. The dollar also remains on the front foot although unconfirmed intervention in the USDJPY saw the pair break through the 150 level only to be slapped down 2% in a matter of seconds with the pair settling just above 149.00 this morning. Gold remained under pressure and is now trading just above the $1,800 level.

Yen “Intervention” Hits the Market

The BOJ walked the walk after talking the talk for a couple of weeks as USDJPY was smashed on the head in late trading yesterday. The pair moved from 150.16 to 147.43 in a matter of seconds and although the Ministry of Finance has refused to confirm intervention, if they did not hit the button, they certainly checked rates. Traders are now expecting further volatility in the sessions ahead as the fundamentals push it higher and the BOJ seems poised to drive it lower. It does now feel like a line has been drawn in the sand at 150 and with large expiries in options still live at this level we are likely to see more action in the pair as we move through a big trading week.

More Central Banks and Data Ahead

It is another big day for investors ahead as more data and another central bank rate decision come into play in already volatile markets. First up in the APAC session, the RBNZ will announce its latest Official Cash Rate decision with the market firmly pricing in no change. There is a raft of Services PMI data due out in Europe as well as another speech from ECB President LaGarde but once again the action is likely to occur in the US time zone. More jobs data is due out in the form of the ADP Non-Farms data followed by ISM Services PMI numbers. Another strong jobs print could see the market off to the races once again.