Dollar Gains on Political Uncertainty

Daily Update - 3rd October 2017

Yesterday’s Focus

•             USD ISM Prices Paid, USD ISM Manufacturing PMI (Sep)

Yesterday’s Explained

The ISM Manufacturing PMI data from the US was the only piece of economic data of note for today and that came in much stronger than what was expected. This has helped the dollar to hold steady as the independence vote in Catalonia continues to haunt the euro and we have seen the euro struggling since morning. It is going to be an important first week of the month and the dollar seems to have started the month and the week on the right note. It remains to be seen whether the dollar bulls can build on this during the course of the week.

Today’s Focus

• AUD RBA Rate Decision
• UK Construction PMI
• Eurozone PPI

Today’s Market

Heading into Tuesday, traders must also brace themselves for other key events. Firstly, as a reminder, we'll have public holidays in both China and Germany Out of the UK, the UK construction PMI is due, with no surprises expected. Meanwhile, Australia will release retail sales and trade balance. On central bank activities, RBA is widely expected to stand pat. In Catalonia, there is a general strike called by the main labour unions; furthermore, expect more political developments as the central government of Spain works on a plan to prevent Catalonia from unilaterally claiming the independence later this week. The Euro is subject to more volatility on Catalonian-related headlines.