- XAG/USD rose to $21.85, up by more than 1%.
- Lorie Logan's dovish words made US yields plunge by more than 2%.
- Despite lower Treasury yields, the US Dollar holds its ground.
On Monday, the Silver Spot price XAG/USD gained momentum, mainly driven by US yields taking a big hit after Federal Reserve’s Lorie K. Logan hinted at “less need” to hike rates this cycle. In the meantime, investors are still assessing Friday’s jobs report from the US with their eyes set on Thursday’s inflation figures. As no relevant data will be released during the session, the green currency may benefit from risk aversion.
Following Logan’s words, the 2,5 and 10-year rates took a big hit and declined to 4.95%, 4.60% and 4.67%, respectively, to multi-week lows. That being said, the Federal Reserve’s stance is still data-dependent, and inventors are still digesting Friday’s jobs report from the US with their eyes set on Thursday’s inflation figures to continue modelling their expectations.
The September US NonFarm Payrolls report continued the trend seen in August. Job creation exceeded expectations, with 336,000 jobs added in all non-agricultural sectors, significantly surpassing the anticipated 170,000 and the previous month's 270,000. However, wage inflation, as measured by Average Hourly Earnings, was slightly lower than expected at 0.2% MoM, as opposed to the expected 0.3%. The Unemployment rate also increased to 3.8% YoY. Regarding the inflation readings, the Consumer Price Index (CPI) is expected to decelerate to 3.6% YoY, and the Core measure is seen to have fallen to 4.1% YoY.
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