During the Asian session, the key event will be the Reserve Bank of New Zealand monetary policy decision. Throughout the day, the final Service PMIs will be released. Eurostat will report the Producer Price Index and Retail Sales. The US will report the ISM Services PMI and Factory Orders. ADP will release its private employment report.
Here is what you need to know on Wednesday, October 4:
The Yen jumped on Tuesday, most likely due to an intervention from Japanese authorities to prevent further depreciation of the currency. The move occurred when USD/JPY was trading above 150.00 and sent the pair as low as 147.28. However, it later trimmed losses and rose to 149.00. The short-term bias is downward, with volatility expected.
US JOLTS Job Openings came in above expectations and pushed US yields higher. The 10-year yield reached 4.80%, the highest since 2007. The US Dollar Index climbed to 107.34, the highest since November of last week, but pulled back with the USD/JPY retreat, ending the day slightly below 107.00.
The Greenback remains supported across the board by positive US data, higher yields, and cautious market sentiment. On Wall Street, stocks lost an average of 1.40% on Tuesday. On Wednesday, the ADP Employment report is due.
EUR/USD printed a fresh ten-month low near 1.0450 and then rebounded modestly to 1.0470. The pair remains under pressure. On Wednesday, Eurostat will release Retail Sales and the Producer Price Index.
GBP/USD finished the day flat, moving sideways around 1.2070. The pair bottomed after US data at 1.2052, the lowest level since March.
The Swiss Franc lagged behind following a lower-than-expected reading of the Swiss Consumer Price Index (CPI) for September, with the annual rate rising from 1.6% to 1.7%, below the expected 1.8%. USD/CHF peaked at 0.9244 and then pulled back toward 0.9200.
The Reserve Bank of New Zealand (RBNZ) will announce its decision on Wednesday. The key rate is expected to remain unchanged at 5.5%. NZD/USD dropped below the 20-day Simple Moving Average (SMA) but managed to rise back above 0.5900.
AUD/USD tumbled for the second consecutive day, affected by the risk-off sentiment and the stronger dollar. The pair reached levels below 0.6300 last seen back in November 2022.
USD/CAD rose for the third consecutive day, breaking above September highs. The pair closed above 1.3700 and is now approaching March highs at 1.3861.
Gold dropped for the seventh day in a row, bottoming at $1,814 before trimming losses and moderately rising to $1,825. Silver recovered somewhat after falling more than 5% in the previous session, ending around $21.20.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD recovers from two-year lows, stays below 1.0450
EUR/USD recovers modestly and trades above 1.0400 after setting a two-year low below 1.0350 following the disappointing PMI data from Germany and the Eurozone on Friday. Market focus shifts to November PMI data releases from the US.
GBP/USD falls to six-month lows below 1.2550, eyes on US PMI
GBP/USD extends its losses for the third successive session and trades at a fresh fix-month low below 1.2550 on Friday. Disappointing PMI data from the UK weigh on Pound Sterling as investors await US PMI data releases.
Gold price refreshes two-week high, looks to build on momentum beyond $2,700 mark
Gold price hits a fresh two-week top during the first half of the European session on Friday, with bulls now looking to build on the momentum further beyond the $2,700 mark. This marks the fifth successive day of a positive move and is fueled by the global flight to safety amid persistent geopolitical tensions stemming from the intensifying Russia-Ukraine war.
S&P Global PMIs set to signal US economy continued to expand in November
The S&P Global preliminary PMIs for November are likely to show little variation from the October final readings. Markets are undecided on whether the Federal Reserve will lower the policy rate again in December.
A new horizon: The economic outlook in a new leadership and policy era
The economic aftershocks of the COVID pandemic, which have dominated the economic landscape over the past few years, are steadily dissipating. These pandemic-induced economic effects are set to be largely supplanted by economic policy changes that are on the horizon in the United States.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.