Live Markets: Currency investors watching US earnings

Legrand SA

06/11/2025 10:52

Adds new blog entry

STOXX 600 down 0.1%

Legrand misses

BoE eyed, UK banks up

Nasdaq futures flat

Adds blog post - Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

CURRENCY INVESTORS WATCHING US EARNINGS

 The dollar is up at a near six-month high against a basket of peers, and UBS analysts reckon decent U.S. corporate earnings have something to do with it. =USD

 The little rally has been underway since Federal Reserve chair Jerome Powell, last week, cast doubt on a December rate hike.

 What the Fed will do depends really on the health of the U.S. economy, but the more usual economic data is lacking due to the U.S. shutdown.

 UBS say that's pushed the FX market into looking at U.S. earnings, as "they are now the most visible and accessible metric of the state of the U.S. economy."

 And they are going well. Of the 379 companies in the S&P 500 that have reported earnings to date for Q3 2025, 83% reported above analyst expectations, the highest beat rate since 2021 Q2, according to LSEG I/B/E/S data.

 That means UBS think: "the path of least resistance seems tilted towards further modest (dollar) upside for now".

(Alun John)

*****

EARLIER ON LIVE MARKETS:

 STOXX DIPS, LEGRAND WEIGHS ON AI PLAYS, UK BANKS UP
CLICK HERE

BEFORE THE BELL: EUROPE STEADY, BOE EYED, AND EARNINGS CLICK HERE

SPOTLIGHT ON KNIFE-EDGE BOE DECISION CLICK HERE

eu https://tmsnrt.rs/4orgFeM