Today, the focus is on the decline in manufacturing activity in Germany, an increase in the number of COVID-19 cases, as well as the feuds between the EU and the UK.
A report on the change in the number of people employed in the US nonfarm sector will be released. Forecast: 850 thousand. If the real data turns out to be higher, the USD may receive a positive market reaction.
Assets to trade: USD/CAD, EUR/USD
Manufacturing activity in Germany is slightly below the forecast. Affects EUR
Cyprus demands the EU to impose sanctions on Turkey. Affects TRY
The UK announces progress in trade negotiations with the EU. Affects FTSE 100
The number of COVID-19 cases continues to increase. Affects Brent
Brussels is suing London over Brexit violation. Affects GBP
Michael Gove, the head of the British delegation in negotiations with the EU, said that some progress had been made in the discussion of the future trade relations. Meanwhile, it became known that Brussels had filed a lawsuit against London for violating the terms of the Brexit deal. The current situation may have a negative impact on the GBP.
Nevertheless, the chart of the currency pair formed a kind of an inverted “head and shoulders” pattern, which indicates that the British currency is likely to strengthen.
The asset has consolidated above the support level of 114,000, so the asset is quite likely to grow.
If the quotes drop below 1.63250, the currency pair might move towards 1.61400.
EUR/AUD on this day in history
- Since 2000, October 2nd has been a trading day 15 times.
- On 73% of those days, the asset finished trading with growth.
- The maximum strengthening range was 1.15%.
- The downward trend was limited to 1.41%.