Forex Today: US Dollar consolidates weekly gains ahead of critical Nonfarm Payrolls data
Here is what you need to know on Friday, October 2:
On Friday, October 2, the US Dollar (USD) displayed signs of consolidation following its surge earlier in the week, as traders prepared for the release of September's Nonfarm Payrolls (NFP) data. This critical employment report would encompass figures on wage inflation and the Unemployment Rate. The European economic calendar would also provide data on the Harmonized Index of Consumer Prices (HICP) for September.
Throughout the week, the USD stood as the strongest currency against the Euro, with the USD Index peaking at 102.20 on Thursday, marking its highest level since April 2025. However, by Friday morning, the index had retreated below 102.00 as investors awaited the NFP release.
Analysts at TD Securities forecast a slowdown in September's NFP, projecting a modest 50k increase in payrolls, coupled with an expected rise in the Unemployment Rate to 4.2%. The bank also anticipated that the job growth would be concentrated outside of healthcare and leisure & hospitality sectors, while government hiring was expected to remain flat.
Despite the broader strength of the USD, widening France-German 10-year bond yield spreads due to fiscal uncertainty weighed on the Euro (EUR), contributing to its decline against the USD. Deutsche Bank analysts noted growing doubts about the European Central Bank (ECB) aggressively hiking interest rates, citing tighter financial conditions and potential economic challenges in coping with another rate hike.
The USD/JPY pair experienced a near 0.5% gain on Thursday before consolidating and falling below 158.00 on Friday. Japan's Tokyo Consumer Price Index (CPI) rose by 2.7% year-over-year in September, surpassing expectations of 1.9%. Meanwhile, GBP/USD dropped to its lowest level since late June, trading below 1.3200, before staging a slight rebound at the start of the European trading session.
Gold (XAU/USD) showed marginal gains, as investors sought refuge in the precious metal amid outflows from the Euro and the British Pound.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 3 other outlets
- Euro gains against Canadian Dollar ahead of Eurozone HICP data fxstreet.com
- Nonfarm payrolls loom large; bond market volatility - what’s moving markets investing.com
- Dollar gains over dong e.vnexpress.net
