This is what you need to know to trade today Monday October 3:
Markets have been relatively quiet during the Asian session on Monday, but volatility has picked up in early morning trading in Europe. Market participants closely monitor political developments in the UK ahead of the release of S&P Global end-September PMIs for Germany, the eurozone, the UK and Canada. The US economic agenda will include the ISM September Manufacturing PMI later in the day. Several FOMC policymakers, including Kansas City Fed President Esther George and New York Fed President John Williams, will also deliver speeches in the second half of the day.
After posting modest gains on Friday, the dollar index has turned lower and broken below 112.00. US stock index futures are trading mixed in the European session with the benchmark 10-year US Treasury yield losing more than 1% to below 3.8%.
During Asian trading hours, data from Japan has shown that the Tankan index of large manufacturing fell to 8 in the third quarter, missing market expectations of 11. On a positive note, the non-manufacturing index rose to 14 in the same period since 13. For his part, Japanese Finance Minister Shunichi Suzuki has reiterated that they continue to monitor foreign exchange market movements with great urgency. The USD/JPY It showed no reaction to Suzuki’s comments or data releases and is now trading sideways slightly below 145.00.
The GBP/USD has gained bullish momentum and has reached its highest level in more than a week, about 1.1300. The news that suggests UK government expected to backtrack on proposal to scrap top income tax rate have helped the pound sterling gain strength. UK Chancellor of the Exchequer, Kwasi Kwarteng, has confirmed this news by announcing that the Government will not go ahead with the plan to eliminate the 45% rate of income tax. After the initial bullish reaction, the pair has returned to the 1.1200 zone, now up around 0.3% on the day.
The EUR/USD It is struggling to make a decisive move in either direction and is trading in a tight range near 0.9800.
The Prayed It broke a two-week losing streak on Friday and has rallied towards $1,670 early on Monday. Although XAU/USD has returned to the $1,660 zone in the morning in Europe, it has managed to maintain its position amid the decline in US Treasury yields.
The Bitcoin it closed in negative territory on Saturday and Sunday, but found support near $19,000. The ethereum It fell almost 4% over the weekend and fell below $1,300 before staging a bounce early on Monday. ETH/USD is now up 1% on the day to $1,290.
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
