Market Drivers; US Session, Oct. 2

The US dollar continued to rise and hit new three-week highs, supported by growing US rates and an ongoing risk-on attitude in reaction to escalating Middle East tensions. The US Dollar Index (DXY) surged to all-time highs of over 101.70 as a result of the ongoing risk aversion and growing global unease. Leading the pack is the ISM Services PMI, followed by the Challenger Job Cuts, Factory Orders, regular weekly Initial Jobless Claims, and the final S&P Global Services PMI. Furthermore, Bostic of the Fed is scheduled to speak.

Due to the strengthening US Dollar, EUR/USD fell back to the 1.1030 area, or three-week lows. Following the release of Producer Prices throughout the bloc, the final HCOB Services PMI for Germany and the euro area will be released.

The GBP/USD pair continued to be cautious, falling for the second day in a row and testing the region of previous lows, which is close to 1.3250. We’ll reveal the final S&P Global Services PMI.

With significant upward momentum, USD/JPY flirted with four-week highs over the 146.00 level. Weekly data on foreign bond investment will be issued together with the final Jibun Bank Services PMI.

AUD/USD ended the day barely changing around the 0.6880 region, supported by firm commodity prices and despite further gains in the US dollar. The Balance of Trade results are due seconded by the final Judo Bank Services PMI.

WTI prices rose to fresh tops past the $72.00 mark per barrel, although that uptick fizzled out following demand concerns and an unexpected build in US crude oil inventories.

Prices of gold faded the previous American session’s marked advance, although they remained close to the area of all-time highs past the $2,640 zone per ounce troy. Silver prices added to Tuesday’s uptick, briefly surpassing the $32.00 mark per ounce.