Forex Today: Overbought dollar giving signs of exhaustion

Valeria Bednarik FXStreet

What you need to know on Friday, October 1:

Risk aversion once again dominated financial markets, although the American currency was not the only beneficiary. Gold prices were firmly up, while safe-haven currencies received attention during the last trading session of the month.

The greenback has reached overbought conditions against most major rivals, with higher chances of a corrective decline.

US Q2 Gross Domestic Product was upwardly revised to 6.7% QoQ, slightly better than anticipated. However,employment-related data keeps disappointing ahead of the Nonfarm Payrolls report to be out next week. US Federal Reserve chief Jerome Powell said that one good employment report could convince him they have reached the employment threshold needed to reduce financial support.

The EUR/USD pair fell to a fresh 2021 low of 1.1562 while GBP/USD bottomed at 1.3516. USD/JPY changed course during US trading hours and settled at 111.34. Commodity-linked currencies recovered nicely, although, in the wider perspective, the advances seem corrective.

Spot gold added roughly $40.00 per troy ounce, ending the day around $1,756.00. Crude oil prices dipped intraday, but ended up with modest gains, with WTI settling at $75.20 a barrel.

Wall Street plummeted at the beginning of the session but stabilized in the red after a modest bounce from intraday lows. Government bond yields retained monthly gains and settled at the upper end of their monthly range.

Safemoon could be poised for a return to $0.0000016

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD rises to 1.1800 neighborhood amid renewed USD selling and trade uncertainties

The EUR/USD pair regains positive traction during the Asian session on Wednesday and jumps to the 1.1800 neighborhood in the last hour, reversing the previous day's modest losses. The intraday move up is sponsored by the emergence of fresh US Dollar, which continues to be weighed down by persistent trade-related uncertainties.

GBP/USD remains stronger above 1.3500 following Trump’s State of the Union

GBP/USD remains in the positive territory for the fourth successive session, trading around 1.3510 during the Asian hours on Wednesday. The pair appreciates as the US Dollar remains subdued following US President Donald Trump’s first State of the Union address of his second administration before a joint session of Congress.

Gold re-attempts $5,200 amid tariffs and geopolitical woes

Gold buyers are back in the game early Wednesday after seeing a correction from monthly highs on Tuesday. The US Dollar slips after Trump’s SOTU fails to impress and as AI-driven worries ease. Dovish Fed bets also weigh. Gold looks north so long as the key 61.8% Fibo resistance at $5,142 holds on the daily chart.

Bitcoin, Ethereum and Ripple post cautious recovery amid downside risks

Bitcoin, Ethereum, and Ripple are posting a cautious recovery on Wednesday following a market correction earlier this week. BTC is approaching a key breakdown level, while ETH and XRP are rebounding from crucial support levels.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.