Forex Today: Fedspeak and data puts the US economy at the centre of the debate


The Greenback started the week on a strong note in a context where investors’ prudence prevailed ahead of key data releases in the US economy, where the labour market is seen taking centre stage.

Here is what you need to know on Tuesday, October 1:

The US Dollar Index (DXY) reversed two consecutive daily pullbacks and charted a marked rebound to the vicinity of the 101.00 hurdle. The final S&P Global Manufacturing PMI is due seconded by the JOLTs Job Openings, Construction Spending, and the ISM Manufacturing PMI. In addition, the Fed’s Bostic and Cook are also due to speak.

EUR/USD could not sustain the initial trespass of the 1.1200 barrier and eventually succumbed to the better tone in the Greenback. The preliminary Inflation Rate in the euro bloc takes centre stage along with the final HCOB Manufacturing PMI in both Germany and the euro zone. Additionally, the ECB’s De Guindos and Schnabel will speak.

GBP/USD traded in an irresolute fashion, settling around 1.3360 following an initial uptick past 1.3400. The final S&P Global Manufacturing PMI will be published.

USD/JPY left behind Friday’s strong retracement and managed to retake the 143.00 region and beyond following an early drop to 141.60. The Unemployment Rate and the BoJ Summary of Opinions will be in the spotlight.

AUD/USD extended its move higher north of 0.6900 and reached new YTD peaks mostly on the back of Chinese stimulus. The final Judo Bank Manufacturing PMI will be unveiled along with Building Permits, Retail Sales, Private House Approvals, and Commodity Prices.

A volatile session saw prices of WTI hover around $68.50 despite rising geopolitical concerns and extra stimulus in China.

Prices of Gold came under further pressure and added to Friday’s losses near the $2,630 region per ounce troy. In the same direction, Silver prices dropped to four-day lows and revisited the sub-$31.00 region per ounce.

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