What you need to take care of on Tuesday, October 4:
The greenback resumed its decline at the beginning of the week, ending Monday with losses across the FX board. The EUR/USD pair was able to post a modest advance and settled around 0.9820, with the shared currency among the worst performers against the USD. Downwardly revised S&P Global Manufacturing PMIs weighed on the EUR.
Financial markets traded with optimism, despite persistent recession concerns. Political and financial turmoil in the United Kingdom keeps triggering volatile market reactions and leading the way. The UK government came up with a potential tax cut of a 45% rate on income, but British Finance Minister Kwasi Kwarteng later said they were dropping the idea. The announcement underpinned GBP/USD, which ended the day near an intraday high of 1.1333. Following UK news, European indexes reverted early losses and settled in the green.
The greenback tried to advance ahead of the US opening, but tepid local data put it back on the bearish path. The ISM Manufacturing PMI contracted to 50.9 in September, barely holding in expansion territory.
Wall Street picked up where European indexes left and posted a substantial advance, further undermining demand for the USD. US Treasury yields retreated, with the yield on the 10-year Treasury note down roughly 15 bps.
The AUD/USD pair regained the 0.6500 threshold ahead of the Reserve Bank of Australia monetary policy decision. USD/CAD settle near its intraday low at around 1.3630.
Finally, the dollar posted uneven advances against its safe-haven rivals, with USD/CHF now trading at 0.9930 and USD/JPY at 144.75.
Gold soared and flirts with $1,700 a troy ounce, while crude oil prices also advanced. WTI is currently trading at around $83.50 a barrel.
Government bond yields were sharply lower but moved off their intraday lows ahead of the close.
Dogecoin’s 4-month long consolidation set to drive investors away unless DOGE reclaims this level
Like this article? Help us with some feedback by answering this survey:
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
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.