Forex Today: Weekly claims and ISM Services keep the focus on the real economy

The US Dollar (USD) has traded in quite a volatile fashion on Wednesday, always amid the unabated tensions from the US-Iran crisis, speculation over another bout of FX intervention by Japanese authorities and bets for whatever the Fed might do or not do in the next few months.

Here is what you need to know on Thursday, September 3:

The US Dollar Index (DXY) has maintained a vacillating tone in the 99.50-99.60 band on Wednesday, coming under fresh downside pressure soon after hitting fresh three-week tops earlier in the day. The weekly Initial Jobless Claims are due seconded by the ISM Services PMI, the Balance of Trade results, quarterly Unit Labor Costs and the speeches by the Fed’s Waller and Hammack.

EUR/USD has traded with a slight downward bias, easing modestly but managing to bounce off two-week lows near 1.1570. Next on tap in the Euroland will be the final S&P Global Services PMI in Germany and the euro zone alongside Producer Prices in the bloc.

GBP/USD could not maintain the break above the 1.3500 hurdle, retreating to as low as the vicinity of 1.3470, where it seems to have met some contention for now. On the UK docket, all the looks will be on the publication of the final S&P Global Services PMI.

USD/JPY dropped markedly, briefly breaching its key 200-day SMA near 158.40, amid increasing market chatter about another FX intervention by the BoJ/MoF to support the Yen. The final S&P Global Services PMI is due next, along with the weekly Foreign Bond Investment figures.

AUD/USD has rapidly left behind Tuesday’s decline, resuming its upside bias and advancing past 0.7170. Next of note in Oz will be the final S&P Global Services PMI, seconded by the Balance of Trade results and speeches by the RBA’s Jones, Hunter and Brischetto.

There was no respite for the upside momentum in WTI prices. Indeed, this time the commodity surpassed the $92.00 mark per barrel to hit fresh six-week highs on the back of escalating concerns in the US-Iran-Hormuz trifecta.

Gold has shown some signs of life, managing to make a U-turn and advancing markedly to the boundaries of the $4,400 mark per troy ounce. Indeed, the precious metal has broken the multi-day decline that has been in place since the August tops near the $4,700 yardstick. Modest losses in the Greenback and mixed US Treasury yields have also accompanied the daily uptick.