Forex Today: Focus shifts to Eurozone inflation figures and key US data as Q4 gets underway

Here is what you need to know on Tuesday, October 1:

Following Monday's choppy action in financial markets, investors shift their attention to key macroeconomic data releases as the fourth quarter gets underway. Eurostat will publish Harmonized Index of Consumer Prices (HICP), the European Central Bank's (ECB) preferred gauge of inflation, on Tuesday. Later in the day, the ISM Manufacturing PMI for September and JOLTS Job Openings data for August will be featured in the US economic docket. Several Federal Reserve (Fed) policymakers are scheduled to deliver speeches as well.

While speaking at the National Association for Business Economics Annual Meeting on Monday, Fed Chairman Jerome Powell said that the Fed is not in a hurry to cut rates quickly, adding that their decisions will be guided by data. The US Dollar (USD) Index edged higher during the American trading hours and ended the last day of the third quarter in positive territory. Early Tuesday, the USD Index stays relatively quiet below 101.00. In the meantime, US stock index futures trade marginally lower on the day, pointing to a cautious mood. 

After testing 1.1200 during the European trading hours on Monday, EUR/USD turned south in the American session and closed in negative territory. Early Tuesday, the pair fluctuates in a tight channel below 1.1150. Markets expect the annual core HICP inflation to remain unchanged at 2.8% in September in the Eurozone.

GBP/USD edged higher at the beginning of the week but lost its traction to close virtually unchanged on Monday. The pair moves sideways below 1.3400 in the European morning.

In the Summary of Opinions from the September policy meeting, the Bank of Japan's (BoJ) reiterated that they will maintain its current accommodative stance but will adjust policy settings if economic conditions improve. USD/JPY gathers bullish momentum after posting gains on Monday and trades at around 144.50 in the European morning, gaining over 0.5% on the day.

Gold extended its correction following Friday's decline and lost nearly 1% on Monday. XAU/USD holds its ground early Tuesday and trades above $2,640.

During the Asian trading hours, the data from Australia showed that Retail Sales rose 0.7% on a monthly basis in August, surpassing the market expectation for an increase of 0.4%. On a negative note, Building Permits declined by 6.1% in the same period. AUD/USD trades marginally higher on the day above 0.6900 to start the European session.