Forex Today: poor US data hits the USD hard

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

• The dollar strengthened during the first half of the day amid prevalent dollar’s demand but suffered a sharp U-turn following the release of a disappointing ISM Markit PMI, which plunged to its lowest in a decade.
• The EUR/USD pair recovered although gains were limited amid soft EU inflation, Markit confirming manufacturing output in contraction territory.
• The GBP/USD spiked to 1.2339 on the back of positive Brexit-related data. There were market talks suggesting that the EU could consider a time-limit on the Irish backstop, later denied, none from official sources. UK PM Johnson said that he hopes it would make progress on Brexit in the next few days.
• Safe-havens gold and yen recovered some ground after falling in the previous sessions, still at risk of falling.
• Crude oil prices extended their slumps, despite OPEC oil output declined to its lowest in 8 years.
• Wall Street settled at its lowest in almost a month amid dismal US data fueling speculation that the Fed would take a more aggressive stance on rates.
• Libra stole the attention in the cryptocurrencies sphere. Regulators concerns about its potential implications for privacy and financial stability.