October 5, 2021

Before you start trading, look at the development of currencies in the Asian session

 The US dollar sought support to rise in the Asian session after exhibiting a dismal performance in Monday’s trading session, with investors ’focus now focused on the release of US services PMI data tonight.

At the time of writing, the dollar index is slightly higher around 93.93 against a basket of major currencies.

US NFP jobs report readings are expected to show an increase with a forecast of 490,000 jobs to be added in September. Tonight's services PMI data will be used as an indication by investors for the upcoming NFP.

Meanwhile the global index traded in the red as investors continued to watch developments on the issue of Evergrande which has asked to stop trading on its shares in Hong Kong pending the announcement of a major deal.

This caused major currency trading to return to gloom in the Asian session, with the Aussie dollar leading the decline as investors also awaited the outcome of the Australian Central Bank (RBA) policy meeting shortly.

Major currencies previously gained strength following the greenback’s recorded decline to a nearly one -week low.

The euro held above 1.1600 against the USD, slightly down from this week’s high it reached in the previous session at 1.6392.

The pound remained stable, rising higher in the New York session. However, pressure from rising gas prices and the unresolved Brexit issue limited the movement of the currency.