Forex Today: Eyes on US PMI data and Fedspeak following a quiet opening to Q4


Here is what you need to know on Monday, October 2:

Financial markets held steady during the Asian trading hours on Monday amid thin trading conditions, with stork markets in China, Hong Kong and India remaining closed for holidays. In the second half of the day, September ISM Manufacturing PMI survey will be featured in the US economic docket. Market participants will also pay close attention to comments from Federal Reserve officials, including Chairman Jerome Powell.

ISM Manufacturing PMI Preview: US factory sector set to extend contraction into September.

Over the weekend, US Congress passed a stopgap funding bill to avert a government shutdown. With this agreement, the previous budget will be extended for 45 days and government will be funded through November 17. Reflecting the positive impact of this development on risk mood, US stock index futures trade in positive territory in the European morning. Meanwhile, the US Dollar Index consolidates the previous week's gains at around 106.00 and the benchmark 10-year US Treasury bond yield fluctuates at around 4.6%.

US Dollar price today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the Swiss Franc.

  USD EUR GBP CAD AUD JPY NZD CHF
USD   -0.14% -0.07% -0.02% 0.31% 0.10% -0.09% -0.46%
EUR 0.14%   0.04% 0.12% 0.44% 0.24% 0.06% -0.33%
GBP 0.08% -0.06%   0.08% 0.38% 0.16% -0.01% -0.39%
CAD 0.02% -0.14% -0.02%   0.31% 0.10% -0.08% -0.44%
AUD -0.31% -0.45% -0.38% -0.33%   -0.21% -0.39% -0.79%
JPY -0.10% -0.22% -0.16% -0.10% 0.20%   -0.17% -0.55%
NZD 0.09% -0.06% 0.03% 0.08% 0.39% 0.17%   -0.37%
CHF 0.45% 0.32% 0.36% 0.44% 0.76% 0.55% 0.37%  

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Euro from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent EUR (base)/JPY (quote).

 

The data from China showed early Sunday that the Caixin Manufacturing PMI declined to 50.6 in September from 51 in August. Additionally, the Services PMI fell to 50.2 from 51.8 in the same period. AUD/USD showed no immediate reaction to these figures due to the Labour Day holiday in Australia and was last seen fluctuating in a tight channel above 0.6400. In the Asian session on Tuesday, the Reserve Bank of Australia (RBA) will announce its policy decisions. The RBA is forecast to hold the policy rate unchanged at 4.1%.

Following a quiet Asian session, EUR/USD gained traction in the European morning and edged higher toward 1.0600. Eurostat will publish the August Unemployment Rate later in the session.

GBP/USD closed virtually unchanged on Friday but suffered large losses in the previous week. The pair managed to find a foothold at the beginning of the new week and was last seen trading modestly higher on the day above 1.2200.

USD/JPY opened on a bullish note and advanced toward the critical 150.00 level in the Asian trading hours on Monday. Japanese Finance Minister Shunichi Suzuki repeated that they are watching currency moves cautiously. The pair retreated modestly but held above 149.50 by the European morning. Similarly, Japan’s Chief Cabinet Secretary Hirokazu Matsuno said they were “closely watching FX moves with a high sense of urgency.”

Gold price started the week under modest bearish pressure and declined to its lowest level since early March near $1,840.

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