Forex Today: fears of a US recession exacerbated by services output
|Here is what you need to know Friday, October 4th:
- The American Dollar plummeted again amid fears of a US economic downturn, as the ISM Non-Manufacturing PMI fell to a three-year low. The employment sub-component shrank, hinting a tepid NFP this Friday.
- Risk aversion was present throughout most of the day, as the US announced plans to impose tariffs on different European goods, a result of WTO ruling in favor of the US in the Airbus case.
- Wall Street managed to recover from intraday lows and close in the green, helping the dollar recover some ground ahead of the close.
- European data missed the market’s expectations, Markit Services PMI indicated contraction in the sector, paints a gloomy picture for Q4.
- The GBP/USD pair jumped past 1.2400 amid UK PM Johnson’s optimism, although his latest proposals have little chances of replacing May’s Withdrawal Agreement. European Council President Donald Tusk said that he told PM Johnson that although they remained open on Brexit, they were still unconvinced, as Johnson’s offer would not win support from the 27 countries that need to sign off on any withdrawal deal.
- Gold soared past 1,500 on the back of risk aversion. USD/JPY fell to the 106.50 price zone.
- Crude oil prices extended their decline, reached fresh two-month lows.
- Cryptocurrencies retained the sour tone, BTC/USD down for a second consecutive day.
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