FX Today: Final PMIs in Europe and the US come to the fore
The US Dollar (USD) partially reversed its multi-day leg lower on Thursday, as the US government shutdown continued to weigh on investors’ sentiment, while the absence of data releases should leave traders focused on US politics as well as geopolitics.

The US Dollar (USD) partially reversed its multi-day leg lower on Thursday, as the US government shutdown continued to weigh on investors’ sentiment, while the absence of data releases should leave traders focused on US politics as well as geopolitics.

Here’s what to watch on Friday, October 3:

The US Dollar Index (DXY) regained some composure following four consecutive daily retracements on Thursday. Meanwhile, sentiment remained dented by the current uncertainty surrounding the US federal government shutdown. The ongoing vacuum of US data releases is expected to affect September’s Nonfarm Payrolls and the Unemployment Rate, while the ISM Services PMI, and the final S&P Global Services PMI should be published as usual.

EUR/USD added to Wednesday’s hiccup and flirted with weekly troughs near the 1.1700 neighbourhood. The final HCOB Services PMI in Germany and the eurozone are due, followed by Producer Prices in the bloc.

GBP/USD came under pressure following the Dollar’s rebound, flirting with three-day lows near the 1.3410 area. The final S&P Global Services PMI will wrap the weekly calendar.

USD/JPY set aside four daily declines in a row and managed to pick up some fresh demand following a test of the 146.60-146.50 band, where its temporary 100-day SMA also sits. Next on tap on the Japanese calendar will be the final S&P Global Services PMI.

The renewed selling pressure prompted AUD/USD to once again break below the 0.6600 support and reach two-day lows near 0.6580 on Thursday. The final S&P Global Services PMI is due in Oz at the end of the week.

There was no respite for the downward trend in prices of WTI on Thursday, falling to new five-month lows after breaching below the $61.00 mark per barrel. The move higher this time came in response to extra oversupply concerns.

Gold prices flirted with record highs just ahead of the $3,900 mark per troy ounce before receding to two-day lows near $3,830. The precious metal’s correction came on the back of the marked resurgence of the buying interest in the US Dollar and higher yields, although uncertainty around the US government shutdown should cap the downside for now. Silver prices came closer to weekly lows after hitting fresh tops above the $48.00 mark per ounce


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