During the Asian session, the key event will be the monetary policy decision of the Reserve Bank of New Zealand. The definitive services PMI will be published throughout the day. Eurostat will report on the Producer Price Index and retail sales. In the United States, the ISM services PMI and factory orders will be reported. ADP will report on private employment.
Here’s what you need to know on Wednesday, October 4:
The Yen rose on Tuesday, probably due to an intervention by the Japanese authorities to prevent further depreciation of the currency. The move came as the USD/JPY pair traded above 150.00 and reached 147.28. However, it later pared losses and rose to 149.00. The short-term bias is bearish, and volatility is expected.
The JOLTS US job openings index beat expectations and pushed US yields higher. The 10-year yield hit 4.80%, the highest since 2007. The Dollar Index rose to 107.34, the highest since November last week, but retreated with the USD/JPY retreat, ending the day slightly below 107.00.
The Dollar remains broadly supported by positive US data, rising yields and cautious market sentiment. On Wall Street, stocks lost an average of 1.40% on Tuesday. The ADP employment report will be released on Wednesday.
The pair EUR/USD It marked a new ten-month low near 1.0450 and then bounced slightly to 1.0470. The pair remains under pressure. On Wednesday, Eurostat will publish retail sales and the Producer Price Index.
GBP/USD ended the day flat, moving sideways around 1.2070. The pair bottomed after US data at 1.2052, the lowest level since March.
The Swiss franc lagged after a lower-than-expected September Swiss Consumer Price Index (CPI) reading, with an annual rate of 1.6% to 17%, below the 1.8% forecast. USD/CHF it reached a high of 0.9244 and then retreated towards 0.9200.
The Reserve Bank of New Zealand (RBNZ) will announce its decision on Wednesday. The reference rate is expected to remain unchanged at 5.5%. The NZD/USD pair It retreated below the 20-day SMA, but managed to rise back above 0.5900.
The AUD/USD pair fell for the second consecutive day, affected by risk aversion sentiment and the strengthening of the Dollar. The pair reached levels below 0.6300, last seen in November 2022.
USD/CAD rose for the third day in a row, breaking above September highs. The pair closed above 1.3700 and is approaching March highs at 1.3861.
The Oro fell for the seventh day in a row, bottoming at $1,814 before paring losses and rising moderately to $1,825. The Silver it recovered a bit after falling more than 5% in the previous session, and ended around $21.20.
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
