Forex Today: poor US data hits the USD hard
|Here is what you need to know on Wednesday, October 2nd:
- The dollar strengthened during the first half of the day amid prevalent dollar’s demand but suffered a sharp U-turn following the release of a disappointing ISM Markit PMI, which plunged to its lowest in a decade.
- The EUR/USD pair recovered although gains were limited amid soft EU inflation, Markit confirming manufacturing output in contraction territory.
- The GBP/USD spiked to 1.2339 on the back of positive Brexit-related data. There were market talks suggesting that the EU could consider a time-limit on the Irish backstop, later denied, none from official sources. UK PM Johnson said that he hopes it would make progress on Brexit in the next few days.
- Safe-havens gold and yen recovered some ground after falling in the previous sessions, still at risk of falling.
- Crude oil prices extended their slumps, despite OPEC oil output declined to its lowest in 8 years.
- Wall Street settled at its lowest in almost a month amid dismal US data fueling speculation that the Fed would take a more aggressive stance on rates.
- Libra stole the attention in the cryptocurrencies sphere. Regulators concerns about its potential implications for privacy and financial stability.
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.