The US Dollar (USD) experienced some fluctuations on Thursday, switching directions several times. With ongoing government shutdowns impacting investor sentiment and a lack of new data, traders seemed to be concentrating more on political and geopolitical developments in the US.
What to expect on Friday, October 3rd:
The US Dollar Index (DXY) found some stability after facing four days of consecutive drops. However, uncertainty persisted over the federal shutdown, and the absence of US data releases is likely to impact September’s non-farm payroll and unemployment statistics. Nonetheless, the ISM Services PMI and the final S&P Global Services PMI are expected to be released as planned.
EUR/USD, reflecting Wednesday’s struggles, hovered around a weekly low close to 1.1700. The final HCOB service PMI for both Germany and the Eurozone is on the agenda, alongside producer prices within the region.
GBP/USD faced pressure due to the dollar’s rebound, testing a three-day low near the 1.3410 mark. The final S&P Global Services PMI will conclude the week’s trading activities.
USD/JPY saw a fourth consecutive decline, attracting some fresh demand after testing the 146.60-146.50 range. The next significant event on the Japanese calendar will be the final S&P Global Services PMI.
Increased selling pressure pushed AUD/USD below the 0.6600 support level again, reaching a low of about 0.6580 on Thursday. The final S&P Global Services PMI will be released over the weekend in Australia.
WTI prices continued their downward trend on Thursday, impacted by rising concerns over potential oversupply, which drove prices to a peak.
Gold prices surged to just shy of the $3,900 mark per troy ounce before retreating to a two-day low around $3,830. This correction in precious metals was primarily influenced by a resurgence in US dollar purchasing and higher yields, although fears regarding the government shutdown may help limit losses for the time being. Silver prices neared weekly lows after hitting new highs above the $48.00 per ounce threshold.
