Forex Today: US labour market and geopolitics dominate the sentiment

Pablo Piovano FXStreet

The Greenback pushed harder and advanced to new three-week highs underpinned by rising US yields and the persistent risk-on mood in response to rising tensions in the Middle East.

Here is what you need to know on Thursday, October 3:

The US Dollar Index (DXY) climbed to fresh tops around 101.70 following the persevering risk aversion along with escalating geopolitical jitters. The ISM Services PMI takes centre stage, seconded by the Challenger Job Cuts, usual weekly Initial Jobless Claims, Factory Orders, and the final S&P Global Services PMI. In addition, the Fed’s Bostic is also due to speak.

EUR/USD slipped back to the 1.1030 region, or three-week lows, on the back of the stronger US Dollar. The final HCOB Services PMI in Germany and the euro area will be published, seconded by Producer Prices in the bloc.

GBP/USD remained on the defensive, down for the second day in a row and revisiting the area of recent lows near 1.3250. The final S&P Global Services PMI will be unveiled.

USD/JPY picked up strong upside traction and flirted with four-week tops north of the 146.00 barrier. The final Jibun Bank Services PMI will be released along weekly Foreign Bond Investment figures.

AUD/USD ended the day barely changing around the 0.6880 region supported by firm commodity prices and despite further gains in the Greenback. The Balance of Trade results are due seconded by the final Judo Bank Services PMI.

WTI prices rose to fresh tops past the $72.00 mark per barrel, although that uptick fizzled out following demand concerns and an unexpected build in US crude oil inventories.

Prices of Gold faded Tuesday’s marked advance, although they remained close to the area of all-time highs past the $2,640 zone per ounce troy. Silver prices added to Tuesday’s uptick, briefly surpassing the $32.00 mark per ounce.

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Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

GBP/USD hits multi-week tops around 1.3560

GBP/USD gathers fresh steam and advances to new three-month peaks near the 1.3560 zone on Friday. Cable’s sharp move higher comes after three daily drops in a row and follows the increasing selling pressure hurting the Greenback.

EUR/USD pops to fresh two-month highs, targets 1.1600

EUR/USD advances markedly, revisiting the upper 1.1500s for the first time since mid-June. The pair’s sharp uptick comes on the back of a strong retracement in the US Dollar amid BoJ intervention chatter and despite steady uncertainty in the Middle East.

Gold picks up pace, approaches $4,400

Gold rebounds toward the $4,400 mark per troy ounce on Friday, reversing the previous day’s pullback. The precious metal’s recovery comes as fresh and intense weakness keep weighing on the US Dollar, while traders keep assessing easing expectations of an imminent Fed interest rate hike and the situation from the Middle East.

Pi Network Price Forecast: PI extends consolidation as bulls eye $0.10

Pi Network (PI) price holds steady on Friday, maintaining a consolidating tone for three consecutive days. Mild retail strength in the PI token remains stable, with Open Interest above $9 million, while social buzz eases. PI token’s technical outlook is mixed, as bearish momentum wanes to neutral, with bulls eyeing the $0.1000 psychological level.

Weekly focus: Some relief in US inflation concerns

Actual inflation data for July came out as expected with a 0.1% m/m increase in headline CPI and 0.2% excluding food and energy. Annual headline inflation remains too high at 3.4% and means that wage earners are experiencing stagnating spending power at best, and core inflation is a bit higher than the inflation target of two percent would suggest.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.