Forex Today: US NFP takes centre stage

The US Dollar (USD) has advanced further on Thursday, trading in levels last seen in early April 2025 on the back of the marked improvement in the sentiment surrounding the US Dollar, geopolitical uncertainty and renewed concerns over the French economy.

Here is what you need to know on Friday, October 2:

The US Dollar Index (DXY) has extended its move higher, leaving behind the key 102.00 hurdle to hit 18-month tops as investors continued to gear up for critical data releases at the end of the week. The NFP will be in the limelight, along with the Unemployment Rate and Factory Orders. In addition, the Fed’s Logan is due to speak.

EUR/USD has added to the ongoing weakness, selling off to the low 1.1200s while reaching new 17-month troughs. The release of the flash Inflation Rate in the euro bloc will wrap up the domestic calendar. The ECB’s Cipollone and Vujčić are also due to speak. 

GBP/USD has faded the previous day’s bullish attempt, reaching new four-month lows in the sub-1.3200 region. The BoE’s Decision Maker Panel (DMP) will be the sole release on the UK docket.

USD/JPY failed to maintain its earlier move past the 158.00 barrier, slipping back toward the low 157.00 afterwards, keeping its decent gains for the day. The Unemployment Rate will be in focus along with the Tokyo CPI and Monetary Base data.

There was no respite for the deep correction in AUD/USD, which has clinched fresh three-month lows near the 0.6900 threshold. Next on tap in Oz will be the publication of the final S&P Global Services PMI on October 5.

Front-month WTI futures have added to Wednesday’s uptick and challenged the $93.00 mark per barrel as supply concerns resurfaced following China’s decision to suspend exports of oil products.

Gold has traded in a volatile fashion, hovering below the $4,200 mark per troy ounce amid traders’ assessment of the Fed’s potential rate path in light of recent softer-than-expected inflation data.