The dollar is still losing ground against major currencies following the release
of ISM Manufacturing index for September which has hit its lowest level in the past 10 years.
The US dollar index maintains a bullish trend,
though it has retreated from its annual highnear 99.70 and is set to test the key level of 99.00.
The EUR/USD pair is trying to recover from its annual lows near 1.0880,
but strong resistance in the area of 1.0950-1.0960 acts as an obstacle to bulls.
GBP/USD continues to trade sideways in a wide weekly range
despite the weak data on business activity in the UK service sector.
Once again, the pair failed to gain momentum when recovering towards the area of 1.2340-1.2350.
Therefore, in the short term, GBP/USD is likely to go downwards
further on the back of a new wave of uncertainty surrounding Britain’s exit from the European Union.
The data on annual PPI from the euro area is set to be published during late European session today.
The index is expected to have declined for the first time since 2016.
In early American session, the market will focus on the weekly data on jobless claims
and ISM Non-Manufacturing Index.
On Friday, October 4, investors will follow the comments of Federal Reserve Chairman Jerome Powell.