USD Lower Ahead of Key Data
The US dollar has been well sold over the European session so far on Thursday as traders display nerves ahead of key US data later today. The ISM Non-Manufacturing reading for September is due and following a weak manufacturing print, there is a great deal of focus being placed on today’s reading. Finally, tomorrow, traders will receive the US employment reports for September. On the back of yesterday’s lackluster ADP result, there is a concern that the numbers might disappoint. USD index trades 98.70 last.
EUR Recovers Though Risks Remain
EURUSD has been a little higher over early trading today given the weakness in USD. However, the Eurozone itself has seen plenty of data weakness yesterday which is keeping ECB-easing expectations firmly rooted. EURUSD trades 1.0958 last, as price continues to recover above the 1.0914 level.
Brexit Uncertainty Continues
GBPUSD has been firmer against USD today also. The UK PM is set to address parliament today with his amended Brexit plan. There are fears that EU leaders will reject it following some initial negative responses. The PM has until October 19th to secure a deal or will be required to request an extension to Article 50 GBPUSD trades 1.2314 last.
Risk assets have firmed today despite weaker global data. Soft PMI sets from the Eurozone, UK, and US have raised fears over the growing global slowdown. However, with USD pulling back today, SPX500 has been able to stabilize following heavy declines yesterday. SPX500 trades 2891.93 last, holding back above late August lows.
Gold & JPY Rally
Safe havens have had a better session so far today also as a weaker USD and recent sell-off in global equities has boosted both JPY and gold. USDJPY trades 107.06 last with price now testing last week’s lows. XAUUSD trades 1502.99 last with price moving firmly back in the direction of the key 1522.75 level.
Crude Crumbles On EIA Report
Oil prices remain under pressure today, extending their decline to an eleventh straight losing day. Yesterday, the EIA reported a further build in US crude stores which has added further pressure to the concern over the global demand outlook. Fears of growing recessionary risks in light of recent global data weakness are keeping oil prices weighed down also. Crude trades 52.34 last with price sitting back under the 52.72 support.
USDCAD has exploded higher over recent sessions as the heavy falls in the price off oil, as well as concerns for global growth, have hit CAD hard. USDCAD trades 1.3334 last following the sharp break back above 1.33. Price is now not far off the 1.3345 resistance level, putting 2019 highs back in focus.
Aussie On The Up
AUDUSD has been a little higher against USD today. Despite the turn lower in global risk sentiment this week, higher gold prices are helping keep AUD supported against a weaker USD. US data over the remainder of the week could see the downward USD move continue, allowing for further recover in AUDUSD which trades .6720 last, still below the .6758 level for now.