US S&P Global Flash PMIs Due Friday Ahead of Fed Policy Meeting

S&P Global's preliminary Purchasing Managers' Index (PMI) figures for October are scheduled for release on Friday at 13:45 GMT, providing a timely read on US private-sector health just days before the Federal Reserve's October 28 policy meeting. Analysts forecast the Manufacturing PMI will dip slightly to 55.6 from 55.9 in September, while the Services PMI is expected to ease to 57.9 from 58.8. September's Composite PMI stood at 58.4. Because all projected readings remain well above the 50-point threshold that separates expansion from contraction, the broader picture still points to healthy growth across the US economy.

The October surveys land amid continued resilience in US economic activity, persistent inflationary pressures, and elevated borrowing costs. The Fed is widely expected to hold rates steady at its October 28 meeting, following a 25-basis-point increase in September. However, investors are fully pricing in another rate hike in December, according to the CME FedWatch tool.

A stronger-than-expected PMI result could reinforce bets on further monetary tightening, likely supporting the US Dollar and weighing on EUR/USD. Conversely, a sharper-than-anticipated slowdown — especially in services — could prompt markets to scale back rate-hike expectations and put downward pressure on the Greenback. If figures land broadly in line with forecasts, the market reaction may be muted.