Forex Today: Fedspeak, Claims and the ISM data steal the show

The US Dollar (USD) has traded with marginal gains, coming under pressure following daily tops near 101.50 as investors have evaluated the softer-than-expected PCE data in August while trimming some bets on extra tightening by the Federal Reserve in the following  months.

Here is what you need to know on Thursday, October 1:

The US Dollar Index (DXY) has revisited the 101.50 region, adding to the ongoing weekly recovery on the back of rising US Treasury yields and some loss of momentum in bets on extra tightening by the Fed. The usual weekly Initial Jobless Claims are due, followed by the Challenger Job Cuts, the ISM Manufacturing, the final S&P Global Manufacturing PMI and Construction Spending. Furthermore, the Fed’s Kashkari, Barkin, Collings, Schmid and Williams are expected to speak.

EUR/USD has kept its bearish bias unchanged, rapidly reversing the early move toward 1.1380 and returning to the 1.1340-1.1330 band. The final S&P Global Manufacturing PMI in Germany and the EMU will be published, seconded by the Unemployment Rate in the broader Euroland. Additionally, the ECB’s Lagarde, Cipollone, Machado, Montagner and Schnabel are due to speak.

GBP/USD has regained some composure, briefly advancing past the 1.3300 hurdle before slipping back toward the 1.3260 zone. The final S&P Global Manufacturing PMI will be the sole release across the Channel. 

Another vacillating session saw USD/JPY navigating in the low 157.00s, extending the ongoing sidelined mood. Next on tap on the domestic calendar will be the BoJ Summary of Opinions, the final S&P Global Manufacturing PMI, weekly Foreign Bond Investment figures, and the Tankan.

AUD/USD has met extra downside pressure, receding toward the 0.6950 region, or new two-month lows. Next on tap will be the final S&P Global Manufacturing PMI along with Balance of Trade results and Commodity Prices.  

Front-month WTI futures have regained some impulse, faltering just ahead of the $92.00 mark per barrel on the back of the lack of any progress on the US-Iran conflict and declining US stockpiles.

Gold has faded the post-PCE uptick past the $4,200 mark per troy ounce, eventually retreating to the $4,150 region amid the US Dollar’s recovery and the move higher in US Treasury yields.