Forex Today: EUR/USD fails to recover, Boris Johnson has new Brexit ideas, and a busy start to Q4
|Here is what you need to know on Tuesday, October 1:
- EUR/USD continues struggling below 1.09 after falling below the round number -- and to the lowest since 2017 -- following weak German inflation numbers. The preliminary all-European inflation figures are due out today. See Euro-zone inflation preview: Dismal figure already priced in – but EUR/USD unlikely to recover
- Brexit: The British government is drafting a proposal to resolve the Irish backstop problem by suggesting customs checks far from the border. Ireland said it is a "non-starter." The Conservative Conference conference continues while the opposition decided not to table a Vote of No Confidence this week. GBP/USD remains below 1.23, as there are 30 days to Brexit. The Markit/CIPS Manufacturing Purchasing Index is projected to show contraction in the sector.
- Trump impeachment: Personal lawyer Rudi Giuliani received a request to turn in documents related to Ukraine-gate. Opinion polls are showing growing support for the Democrats' impeachment inquiry.
- The Reserve Bank of Australia cut interest rates to 0.75% as expected and opened the door to do more. However, Governor Phillip Lowe and his colleagues have expressed optimism by saying that the economy is at a "gentle turning point." AUD/USD remains pressured, closer to 0.67. Lowe will speak later today.
- Canadian Gross Domestic Product for July is expected to show modest growth after a robust second quarter. The Canadian dollar has been on the back foot in recent days as oil prices dropped.
- Japan is raising the sales tax today amid fears that it could weigh on the economy. The world's third-largest economy has a heavy debt burden.
- The US ISM Manufacturing PMI is the main economic release today and may impact the broader mood -- as well as serving as a hint toward Friday's jobs report. Economists expect a rise to above 50 -- indicating a return to growth for the sector. Several members of the Federal Reserve will also be speaking today. See US Manufacturing ISM Purchasing Managers’ Index Preview: Too soon to cheer
- Gold has been extending its slump, falling closer to $1,450.
- Cryptocurrencies are recovering with Bitcoin touching $8,500.
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