USD Continues to Grind Higher and The Bank of Canada Pauses as Expected

As anticipated, we received data on US manufacturing PMI and services PMI. Let's break it down. The manufacturing PMI came in at 50.3, surpassing the consensus of 47.9. Similarly, the services PMI for January exceeded expectations, hitting 52.9 against a consensus of 51.

Hello, traders! It's Luca Santos here on this Thursday, bringing you the latest updates from the financial markets. While you were probably sleeping, significant releases occurred, especially from the Bank of Canada.

As anticipated, we received data on US manufacturing PMI and services PMI. Let's break it down. The manufacturing PMI came in at 50.3, surpassing the consensus of 47.9. Similarly, the services PMI for January exceeded expectations, hitting 52.9 against a consensus of 51.

In my previous webinar on Tuesday, I discussed how December often sees increased spending, leading to a surge in manufacturing and services. This is exactly what played out, driving these economic indicators higher.

Now, why wasn't I surprised when the Bank of Canada decided to keep interest rates steady at 5%? The robust performance in manufacturing and services indicated that they don't need to implement any changes at this moment. It's a positive sign for the Canadian economy.

Shifting focus to the broader picture, the US dollar index experienced a notable downtrend on Wednesday. However, after the release of manufacturing and services PMI data, the US dollar regained strength, reinforcing my belief in a robust US dollar for the first quarter of the year.

If you missed our Tuesday webinar, fret not! We have another one tonight from 8 to 9 p.m. (Australia time). Feel free to join us, as we delve into market analyses, trading strategies, and more. It's completely free, and you can register on our website.

In summary, stay tuned for a strong US dollar in the first quarter, and there's more market excitement to come. Unfortunately, I won't be here tomorrow, but I look forward to seeing you tonight or next week. Have a great weekend ahead!

This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.

Regulation: ASIC (Australia), FSCA (South Africa)
read more
Dollar extends slide ahead of PCE inflation data

Dollar extends slide ahead of PCE inflation data

Fed Governor Waller reiterates support for lower interest rates - PCE inflation data may impact Fed rate cut bets beyond September - S&P 500 and Dow Jones hit fresh record highs - Gold gains, approaches upper boundary of sideways range
XM Group | 15h 42min ago
US Dollar Surges, Global Markets Await Key Inflation Data | 29th August 2025

US Dollar Surges, Global Markets Await Key Inflation Data | 29th August 2025

The US Dollar extends gains, with DXY near 98.00 ahead of key PCE data. EUR/USD drifts to 1.1650 on weak eurozone growth, while USD/JPY hovers below 147.00 after hotter Tokyo CPI. GBP/USD slips toward 1.3510 on UK fiscal concerns, and USD/CNY steadies around 7.10 as PBoC leans against yuan weakness. Traders brace for PCE to confirm—or challenge—the USD’s bullish momentum.
Moneta Markets | 19h 3min ago