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Foreign Exchange Market Update

Foreign Exchange Market Update

Please call the FX Department at 626-279-3235 for the most current rate.

November 7, 2024

bar graph shows overnight changes in major currencies around the world

 

United States (U.S.): Labor Productivity Surges Slightly Less Than Expected in Q3; Weekly Jobless Claims Inch Up To 221,000

Labor productivity in the U.S. increased slightly less than expected in the third quarter while unit labor costs rose more than expected according to a report released by the Labor Department. Labor productivity shot up by 2.2% in the third quarter after surging by a downwardly revised 2.1% in the second quarter. Economists expected labor productivity to jump by 2.3% compared to the 2.5% spike reported for the previous quarter. Meanwhile, the report said unit labor costs surged by 1.9% in the third quarter after spiking by an upwardly revised 2.4% in the second quarter. Moreover, unit labor costs were expected to rise by 0.5% compared to the 0.4% increase reported for the previous quarter. 11/07/2024 - 08:42:00 (RTTNews)

The Labor Department reported a modest rebound in first-time claims for U.S. unemployment benefits in the week ended November 2. Initial jobless claims crept up to 221,000, an increase of 3,000 from the previous week's revised level of 218,000. Economists expected jobless claims to rise to 221,000 from the 216,000 reported for the previous week. The uptick came a week after jobless claims dropped to their lowest level since hitting 216,000 on May 18. 11/07/2024 - 08:36:00 (RTTNews)

 

United Kingdom (U.K.): Bank of England Cuts Rate for Second Time This Year

British Pound traded at 1.2990 against USD at 9:00 am PST.

The Bank of England reduced its benchmark rate for the second time this year citing continued progress in disinflation. The Monetary Policy Committee declared lowering the rate by 25 basis points to 4.75%. The outcome of the two-day meeting matched expectations. Previously, the bank had reduced the policy rate by a quarter-point in August, the first reduction since March 2020. At the November meeting, eight members voted for a 25 bps cut, while Catherine Mann alone voted to maintain the rate at 5.00%. The committee continues to monitor closely the risks of inflation and will decide the appropriate degree of monetary policy restrictiveness at each meeting, the BoE said. 11/07/2024 - 07:39:00 (RTTNews)

 

European Union (E.U.): Eurozone Retail Sales Growth Softens in September

Euro traded at 1.0793 against USD at 9:00 am PST.

Eurozone retail sales growth softened in September largely reflecting a decline in food sales and a sharp drop in auto fuel turnover, data published by Eurostat showed. Retail sales logged an increase of 0.5% monthly in September, slower than the 1.1% rise in August. The growth rate slightly exceeded economists' forecast of 0.4%. Food, drinks, and tobacco sales fell 0.4%, in contrast to the 1.1% rise a month ago.

Meanwhile, non-food product turnover grew 1.1% after a 1.2% increase. Automotive fuel in specialized stores registered a 0.2% growth, weaker than the prior month's 1.3% increase. Year-on-year, retail sales growth improved to 2.9% from 2.4% in August and sales are expected to grow 1.3%. In the E.U., retail sales grew 0.3% from August and 2.8% from the previous year. 11/07/2024 - 05:44:00 (RTTNews)


This market update is prepared by Cathay Bank for informational purposes only and does not constitute any form of legal, tax or investment advice, nor should it be considered an assurance or guarantee of future exchange rate movements or trends. This information is provided without regard to the specific objectives, financial situations or needs of any recipient. Cathay Bank does not make any representations or warranties about the accuracy, completeness or adequacy of this market update.

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