Here is what you need to know on Friday, September 30:
The greenback came under heavy selling pressure and the US Dollar Index (DXY) closed the second straight day in negative territory, losing over 2% in that period. Markets stay relatively quiet early Friday as investors await the HICP inflation data from the euro area and the Personal Consumption Expenditures (PCE) Price Index figures from the US. Ahead of the weekend, the University of Michigan (UoM) will release the final version of its Consumer Sentiment Index for September. On the last trading day of the third quarter, position readjustments and profit taking could ramp up the market volatility in the second half of the day.
Earlier in the day, the data from China showed that the NBS Manufacturing PMI recovered slightly above 50 in September and the Non-Manufacturing PMI edged lower to 50.6 from 52.6 in August. The Shanghai Composite Index failed to stage a rebound after these data and closed in negative territory.
Meanwhile, the market mood remains cautious ahead of the above-mentioned data releases. US stock index futures trade mixed and the 10-year US Treasury bond yield fluctuates in a tight range above 3.7%. The DXY stays in positive territory slightly above 112.00.
EUR/USD climbed to a fresh weekly high above 0.9830 early Friday but lost its bullish momentum. The pair was last seen posting small daily losses at around 0.9800. Annual HICP inflation in the euro area is expected to rise to 9.7% in September from 9.1% in August. On Thursday, Germany's Destatis reported that the annual Consumer Price Index jumped to 10% in September, surpassing the market expectation of 9.4%.
GBP/USD continued to gather bullish momentum on Thursday and gained more than 200 pips. The UK's Office for National Statistics announced on Friday that the Gross Domestic Product expanded by 4.4% on a yearly basis in the second quarter, surpassing the market expectation of 2.9% by a wide margin.
USD/JPY extended its sideways grind below 145.00 for the third straight day on Thursday. The pair stays directionless in its weekly range early Friday. The data from Japan revealed that the Consumer Confidence Index declined to 30.8 in September from 32.5 in August but this print failed to trigger a noticeable market reaction.
Gold capitalized on falling US Treasury bond yields and advanced to the $1,670 region in the early European session on Friday.
Bitcoin managed to stage a modest rebound on Thursday but lost its momentum before testing $20,000. Ethereum continues to move up and down in a narrow band at around $1,300 on Friday.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD remains under pressure above 0.6400
AUD/USD managed to regain some composure and rebounded markedly from Tuesday’s YTD lows in the sub-0.6400 region ahead of the release of the Australian labour market report on Thursday.
EUR/USD faces decent contention around 1.0600
The knee-jerk in the Greenback reignited some buying interest in the risk complex and pushed EUR/USD to three-day highs near 1.0680, rapidly leaving behind the recent yearly low around 1.0600.
Gold eases despite risk-off mood
Gold trades in a relatively tight range near $2,390 in the second half of the day on Wednesday. In the absence of high-tier data releases, investors keep a close eye on headlines surrounding the Iran-Israel conflict.
Ethereum trades around the $3,000 support following a surge in validator queue
Ethereum (ETH) continued a sideways movement on Wednesday as investors seemed to be waiting for an upward or downward price catalyst. Despite the price stagnancy, the ETH validator queue - possibly fueled by the DeFi restaking boom - rose sharply.
Markets stabilize after Powell rules out rate hike, but the signs don’t look good
Markets are volatile right now; however, a relative calm has descended on the market and US. US stocks are down a touch, but the Vix is lower, US Treasury yields are lower, and the dollar is mostly lower vs. its G10 FX counterparts.