Elevated Sterling volatility.
ADP data recorded an increase in private-sector payrolls of 208,000 for September and slightly above consensus forecasts of a 200,000 increase while the August increase was revised up sharply to 185,000 from 132,000.
The annual increase in wages for job stayers edged higher to 7.8% from 7.7% while the rate of increase for job changers slowed to 15.7% from 16.2%.
The US ISM non-manufacturing index declined marginally to 56.7 for September from 56.9 previously but was above expectations of 56.0 with both new orders and business activity registering a slightly slower rate of expansion on the month.
There was a stronger rate of employment growth for the month while supply-side pressure eased slightly. Prices increased at the slowest rate since February 2021, although this was still in significant expansion territory.
The slightly stronger than expected US data releases helped trigger a reversal in Treasuries with yields moving higher again.
The 10-year yield increased to highs near 3.80% before a retreat to 3.75%.
The dollar posted notable gains after the US data releases with higher yields triggering a fresh advance for the US currency. Risk conditions were also again a key element with the dollar strengthening as equities moved lower.
The dollar weakened again from late on Wednesday as equities proved resilient.
Overall volatility remained elevated with the Bank of England again failing to buy gilts in the latest auction.
There was no further clarification on the UK fiscal timetable which undermined sentiment and contributed to further very choppy Sterling trading as risk conditions had a big impact.
Swiss National Bank member Maechler stated that the bank was seeing more signs of second-round inflation effects which was why the bank had tightened policy and she added that it was quite possible that the central bank could raise interest rates again.
She also reiterated that the bank was ready to intervene if the franc was too strong or too weak.
The Euro-Zone data releases provided no Euro support during the day. Weaker risk appetite triggered another round of Euro selling after the New York open. Slightly stronger than expected data and higher yields supported the dollar. Weaker equities also underpinned the US currency.
EUR/USD dipped to lows below 0.9850. A recovery in equities curbed dollar support from late in New York with EUR/USD recovering to around 0.9915.
Overall yen volatility eased during the day. USD/JPY was unable to challenge 145.00 despite higher US yields and settled around 144.50.
Hawkish SNB rhetoric boosted the Swiss franc. EUR/CHF slipped sharply to 0.9700 before a slight recovery with net dollar losses to just above 0.9800.
Sterling was undermined by a fresh setback in equities as risk conditions dominated. Overall confidence in the UK outlook remained very fragile. GBP/USD dipped sharply to lows below 1.1250 before a recovery to 1.1320 from highs at 1.1380.
Commodity currencies posted sharp losses as equities retreated before a sharp recovery as stocks rallied. AUD/USD dipped to lows below 0.6420 before a strong rebound to 0.6515. USD/CAD posted strong gains to highs near 1.3700 before a retreat to near 1.3600 with stronger oil prices providing support.
|13:30||USD Unemployment Claims||205K||193K|