Interest Rate Cut Expectations Hold the Market’s Attention Ahead of Friday’s US NFP Release

Financial markets are treading water today after a mildly positive overnight session. Australian Q3 growth disappointed and

missed both the prior quarter’s reading and forecast, while the latest German factory order numbers fell further, highlighting

ongoing weakness in Europe’s largest economy. In the currency market, all eyes on ever changing US and ECB interest rate

forecasts with the Fed now expected to cut rates by 125 basis points next year, while the ECB may cut up to 150 bps in

2024. These moving expectations have weakened the Euro further while the US dollar index has moved slightly higher.

Markets will shortly turn their attention to Friday’s NFP figure ahead of next week’s central bank decisions by the US

Federal Reserve (FOMC), the European Central Bank (ECB), and The Bank of England (BoE)

For all central bank interest rate decisions see the DFX Central Bank Calendar.