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Here is what you need to know on Wednesday, October 2:

  • Concerns about the health of the US economy continue weighing on the US dollar. US auto sales may have slipped by some 12% after several carmakers reported double-digit drops. The data join the devastating Purchasing Managers’ Index for the manufacturing sector — ISM reported a score of 47.8 — the worst in 10 years.
  • EUR/USD escaped from two-year lows below 1.09  and AUD/USD recovered from ten-year troughs under 0.67/
  • The poor US data lowers expectations for Friday’s Non-Farm Payrolls. Today’s ADP jobs report serves as another hint toward the event.
  • UK prime minister Boris Johnson is set to lay out an ultimatum to the EU — reach an agreement by October 11 — or the UK leaves without a deal. He is also poised to offer a plan that includes a limited four-year backstop. His keynote speech to the Conservative Party’s conference is expected around 11:00 GMT.
  • UK Manufacturing PMI beat expectations but remained below 50 — indicating contraction. Construction PMI is set to remain negative today.
  • Euro-zone inflation figures missed expectations and final manufacturing PMIs have confirmed contraction in the sector. German finance minister Olaf Scholz said that the economy can cope with a slowdown.
  • The Canadian dollar has stabilized after July’s GDP disappointed with an increase of only 0.1% — but mostly due to a temporary shutdown of oil installations.  
  • Cryptocurrencies have edged lower after gaining earlier this week.