Here is what you need to know on Friday, October 2:
Fundamental news kept investors on their toes this Thursday, which rather ignored macroeconomic developments. The key themes were the US stimulus package and a post-Brexit deal between the UK and the EU.
House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued discussing a possible coronavirus aid package. However, mid-US afternoon, Pelosi said that Republicans and Democrats are still far apart on state and local aid, adding that she is still optimistic about reaching a deal.
Regarding Brexit, the European Commission announced it would send a “letter of formal notice” to the UK for breaching the Withdrawal Agreement. British PM Johnson's spokesman, on the other hand, reiterated that they are committed to working through the Joint Committee to find a solution to Northern Ireland protocol.
EUR/USD hit a weekly high of 1.1769, despite tepid European data, with the Union’s unemployment rate, rising for a fifth consecutive month. The GBP/USD pair ended the day with modest losses, weighed by Brexit headlines.
US data was mixed but still indicated growth. That backed equities in detriment of the greenback, which ended the day with uneven losses against most major rivals.
The USD/JPY pair was unable to attract investors, and it remained stuck around 105.50/60. The Japanese government reported that they would start working on a new stimulus aid package by year's end and it will be submitted to parliament in January.
Gold settled at around $1,910.00 a troy ounce, amid prevalent dollar’s weakness. Crude oil prices, on the contrary, plummeted amid mounting concerns about global demand within the pandemic context. WTI fell to $37.60 a barrel, recovering some ground ahead of the close and settling at around $38.60 a barrel.
Commodity-linked currencies were among the strongest, with the Canadian dollar sharply up against the greenback, despite weakening oil prices.
Coronavirus. European authorities are cautiously optimistic, as the number of new daily cases seems to have stabilized. Restrictions, however, remain in several countries heading into the flu season.
The focus shifts to the US monthly Nonfarm Payroll report, expected to show a modest increase in jobs creation in September.
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.