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Weak ADP Jobs Report Tilts Fed-Cut Bets as Yen Hits Nine-Month Low

A House vote to reopen the government would restart official economic reports crucial to the Fed.

Overview

  • ADP reported U.S. private employers shed about 11,250 jobs per week in the four weeks to Oct. 25, signaling softer hiring.
  • Traders priced roughly a two-in-three chance of a 25 basis point Fed cut in December, and benchmark Treasury yields eased by about 3 basis points.
  • The dollar slipped to a roughly one-and-a-half-week low before edging higher late Wednesday as rate-cut odds firmed and a Fed official argued for holding rates steady.
  • The Republican-led House scheduled a Wednesday vote on a funding deal that President Trump has said he would sign, which would end the shutdown and restore data releases. The White House said October jobs and consumer price reports may not be published.
  • The yen fell to around 154.8–155 per dollar and a record low versus the euro after Prime Minister Sanae Takaichi urged a slower BOJ tightening path, drawing a fresh warning on rapid moves from Finance Minister Satsuki Katayama.