US second-quarter unit labour costs increased by 1.0%, compared to the expected 1.2%. The preliminary estimate was a rise of 1.6%.<\/p>\n
The ISM August services PMI was 52.0, which was above the anticipated 51.0. Meanwhile, the US September S&P Global final services PMI was 54.5, slightly lower than the 55.4 preliminary figure.<\/p>\n
The S&P 500 experienced a small gain at the day’s start, with ISM services data anticipated next. This week’s data suggests an economy that is slowing down but not collapsing.<\/p>\n
Canada’s trade balance for July was -4.94 billion, greater than the -4.75 billion forecasted. A general risk warning advises that foreign exchange trading involves a high risk that may not be suitable for everyone, especially due to leverage, which increases exposure to risk and potential losses.<\/p>\n
It is crucial to consider investment goals, experience level, and risk tolerance before engaging in foreign exchange trading. It is also advised not to invest money you cannot afford to lose.<\/p>\n
The latest data showing unit labor costs rising only 1.0% is a significant development for us. After watching the core Consumer Price Index (CPI) hover stubbornly around 3.1% through the summer of 2025, this is the kind of disinflationary signal the Federal Reserve has been waiting to see. This development is already causing a shift in interest rate futures, which now suggest a greater chance of a rate cut in the first half of 2026.<\/p>\n
However, the economy is not showing signs of a major slowdown, as evidenced by the stronger-than-expected ISM services PMI of 52.0. This resilience aligns with the recent Q2 2025 GDP reading, which showed the economy growing at a respectable 2.1% annualized rate. This “soft landing” scenario, with easing inflation and steady growth, generally supports a cautiously optimistic stance on equity index futures.<\/p>\n
A significant risk on the horizon is the renewed discussion of a 15-20% minimum tariff on all EU goods. This political uncertainty is the primary driver behind the recent drop in the EUR\/USD pair below the 1.05 mark. We are seeing traders actively buying put options on the Euro to hedge against further potential declines driven by trade friction.<\/p>\n
This clash between positive domestic economic data and external political risk is a recipe for increased market volatility. We recall the sharp market swings during the 2018-2019 trade disputes, which saw the VIX index spike above 25 on several occasions. As a result, using options to define risk, such as buying protective puts on the S&P 500, is becoming a more prudent strategy for the coming weeks.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" US labor costs rose less than expected; services PMI data indicates continued growth amid slowing economic trends.<\/p>\n","protected":false},"author":62,"featured_media":17022,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-30224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/30224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=30224"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/30224\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17022"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=30224"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=30224"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=30224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}