October 05, 2022 10:35 GMT
- EUR/USD trades lower headed into the NY crossover, with the pair fading following the challenge of the bear channel top at 0.9998. The dip lower in the pair is primarily USD driven and part of broader market consolidation after the sharp equity rally posted since the beginning of the week.
- The moderation in risk sentiment has seen the USD Index decline bottom out, with prices bouncing slightly off the Tuesday low at 110.055. Labour market data may determine the longevity of any bounce, with ADP employment change and ISM Services later today, ahead of NFP on Friday.
- In LatAm, Colombia inflation data headlines the Wednesday docket with Brazilian IP data also expected. Focus will then turn to the Peru central bank decision on Thursday as well as Mexico and Chile CPI data on Friday.