Forex Today: Dollar depressed on recession fears, Boris Johnson set to reveal Brexit ultimatum, more NFP hints

Yohay Elam FXStreet

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.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.