FX Today: US jobs data and German flash CPI come to the fore

Fresh concerns surrounding a potential US government shutdown coupled with Fed rate cut expectation weighed on the US Dollar (USD) on Monday in a week where the US labour market is seen taking centre stage.

Here’s what to watch on Tuesday, September 30:

The US Dollar Index (DXY) added to Friday’s pullback and flirted with the area of three-day lows near 97.80 against the backdrop of further loss of momentum in US yields. The JOLTs Job Openings takes centre stage, alongside the FHFA’s House Price Index, the Chicago PMI, the CB Consumer Confidence, and the API’s weekly report on US crude oil inventories. In addition, the Fed’s Bostic, Jefferson and Goolsbee are due to speak.

EUR/USD managed to extend Friday’s recovery and revisit the 1.1750 zone amid the broad-based selling impulse on the Greenback. The Consumer Inflation Expectations in the euro area are due, followed by speeches by the ECB’s Cipollone, Kazaks, Muller, Lane, Machado, and Schnabel.

GBP/USD has started the week on a firm foot, advancing to the 1.3460 zone just to lose some momentum afterwards. The UK Current Account results will be published along with quarterly Business Investment figures and the final Q2 GDP Growth Rate. Additionally, the BoE’s Lombardelli, Ramsden, Mann and Breeden are due to speak.

USD/JPY faced extra downside pressure on Monday, slipping back to three-day lows near the 148.50 zone, an area also coincident with its 200-day SMA. The BoJ Summary of Opinions is due, followed by Retail Sales, flash Industrial Production, Housing Starts and Construction Orders.

AUD/USD rose sharply and approached the 0.6580, or two-day highs, ahead of the RBA meeting. The RBA is widely expected to leave its OCR unchanged, while Building Permits, Housing Credit, and Private House Approvals are also due.

Prices of the American WTI fell to three-day lows, returning to the area below the $64.00 mark per barrel on the back of the resumption of oversupply concerns.

Gold prices advanced to a record high around the $3,830 mark per troy ounce amid expectations of Fed rate cuts and fresh concerns over a potential US shutdown. By the same token, prices of the ounce of Silver rose past the $47.00 level per ounce for the first time since early May 2011.