Forex Today: Dollar depressed on recession fears, Boris Johnson set to reveal Brexit ultimatum, more NFP hints
|Here is what you need to know on Wednesday, October 2:
- Concerns about the health of the US economy continue weighing on the US dollar. US auto sales may have slipped by some 12% after several carmakers reported double-digit drops. The data join the devastating Purchasing Managers' Index for the manufacturing sector -- ISM reported a score of 47.8 -- the worst in 10 years.
- EUR/USD escaped from two-year lows below 1.09 and AUD/USD recovered from ten-year troughs under 0.67/
- The poor US data lowers expectations for Friday's Non-Farm Payrolls. Today's ADP jobs report serves as another hint toward the event.
- UK prime minister Boris Johnson is set to lay out an ultimatum to the EU -- reach an agreement by October 11 -- or the UK leaves without a deal. He is also poised to offer a plan that includes a limited four-year backstop. His keynote speech to the Conservative Party's conference is expected around 11:00 GMT.
- UK Manufacturing PMI beat expectations but remained below 50 -- indicating contraction. Construction PMI is set to remain negative today.
- Euro-zone inflation figures missed expectations and final manufacturing PMIs have confirmed contraction in the sector. German finance minister Olaf Scholz said that the economy can cope with a slowdown.
- The Canadian dollar has stabilized after July's GDP disappointed with an increase of only 0.1% -- but mostly due to a temporary shutdown of oil installations.
- Cryptocurrencies have edged lower after gaining earlier this week.
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