The USD remains stable. Overview for 04.10.2021

04.10.2021

EURUSD still remains under pressure; investors still like the “greenback”. 

The major currency pair remains weak early in October. The current quote for the instrument is 1.1612.

Market players’ emotions towards the USD are still pretty strong: everyone is expecting the US Fed to back up its words about an early reduction of the QE program with deeds. First moves in this direction may be made as early as November and the “greenback” may get actual support because, at the moment, the situation is based solely on expectations and rhetoric.

Last Friday’s statistics from the USA were rather mixed. For example, the Personal Spending in August added 0.8% m/m, more than expected, and that’s not bad. However, the July reading was revised downwards, 0.1% m/m and that made the situation quite questionable. In its turn, the Personal Income increased by 0.2% m/m, the same as expected.

The ISM Manufacturing PMI improved up to 61.1 points after being 59.9 points the month before. It means that companies and enterprises do not see big risks in the upcoming tightening of the Fed’s monetary policy. The same indicator from Markit showed 60.7 points after being 60.5 in July. 

This week is going to bring a lot of news for the American currency. As usual, the start of the month will offer the labour market statistics. The Unemployment Rate is expected to drop to 5.1% in September after 5.2% in August. One of the key indicators, the Non-Farm Employment Change, may improve pretty much.

Attention!

Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.