What are the main events for today?

The main event in the European session was the Switzerland CPI which missed expectations by a big margin once again. We will also get the final PMI readings but those are generally not market moving. In the American session, we get the US Jobless Claims figures and the US ISM Services PMI which are gonna be the main highlights for the day ahead of the US NFP report tomorrow.

12:30 GMT/08:30 ET – US Jobless Claims

The US Jobless
Claims continues to be one of the most important releases to follow every week
as it’s a timelier indicator on the state of the labour market.

Initial Claims
remain inside the 200K-260K range created since 2022, while Continuing Claims
after rising sustainably during the summer improved considerably in the last
weeks.

This week Initial
Claims are expected at 220K vs. 218K prior, while Continuing Claims are seen at 1832K vs. 1834K prior.

14:00 GMT/10:00 ET – US September ISM Services PMI

The US ISM
Services PMI is expected at 51.7 vs. 51.5 prior. This survey hasn’t been giving
any clear signal lately as it’s just been ranging since 2022, and it’s been
pretty unreliable. The market might focus just on the employment index ahead of
the NFP report tomorrow.

The recent S&P Global
Services PMI noted that
“the early survey indicators for September point to an economy that continues
to grow at a solid pace, albeit with a weakened manufacturing sector and
intensifying political uncertainty acting as substantial headwinds”.

“The sustained
robust expansion of output signalled by the PMI in September is consistent with
a healthy annualized rate of GDP growth of 2.2% in the third quarter. But there
are some warning lights flashing, notably in terms of the dependence on the
service sector for growth, as manufacturing remained in decline, and the
worrying drop in business confidence”.

“A reacceleration
of inflation is meanwhile also signalled, suggesting the Fed cannot totally
shift its focus away from its inflation target as it seeks to sustain the
economic upturn.”

This article was written by Giuseppe Dellamotta at www.forexlive.com.