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Market Review 04-10-21

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Forex Today: Evergrande, infrastructure and inflation worries return ahead of OPEC+

Here is what you need to know on Monday, October 4:

Markets have kicked off the week on the back foot after Friday’s rally, while the dollar remains stable. New worries about Evergrande, uncertainty about US infrastructure, and covid headlines are in the limelight.

Congress: Voting on the bipartisan infrastructure bill was suspended amid a lack of support from the left-wing of the Democratic Party. Progressives want guarantees that the larger $3.5 trillion bills would receive backing from centrists. Uncertainty is weighing on sentiment.

Evergrande: The Chinese construction behemoth is in the spotlight again after trading was suspended in shares. The fate of a $260 million debt payment is in the air, yet reports of sales of some of its assets and an orderly restructuring provide hope. Chinese markets are closed for a holiday and resume activity only on Friday.

Concerns that global growth would be delayed due to inflation and supply-chain issues continue weighing on sentiment.

Coronavirus: One of the reasons for Friday’s rally was Merck’s announcement of developing an antiviral cure to the disease. Merck’s pills still require regulatory approval. Vaccines have pushed global cases lower, yet the Delta variant is still wreaking havoc, contributing to supply-chain disruptions.

EUR/USD has stabilized around 1.16 ahead of the release of Sentix Investors Confidence. GBP/USD is clinging to its recovery from Friday when it surged to 1.3550. Britain continues grappling with ongoing petrol shortages. USD/JPY is trading around 111 as Fumio Kishida becomes Japan’s Prime Minister.

OPEC+ members are meeting to discuss oil output cuts amid higher fuel prices, especially those of natural gas. No substantial changes are expected. WTI Crude Oil is trading around $75, close to the highs.

Nonfarm Payrolls stand out as the main event of the week and could seal the deal on the Federal Reserve’s expected tapering announcement. Fed Chair Jerome Powell’s signal of such a reduction in bond-buys is the main reason for the dollar’s rally early last week. Fed officials James Bullard and Kenneth Montgomery are set to speak later in the day. Cryptocurrencies: Bitcoin is holding onto gains recorded on Friday when it shot from $44,000 to $48,000. Speculation about regulation is in play. Ethereum is changing hands near $3,330, above last week’s levels, and Ada is around $2.20.

Source: https://www.fxstreet.com/news/forex-today-evergrande-infrastructure-and-inflation-worries-return-ahead-of-opec-202110040522




According to Rekha Chauhan (Analyst at FXStreet – 3rd party source) the GBPJPY is long positions above 151.01 with target at 151.63

Past performance is not a guarantee of future performance

Source: https://www.fxstreet.com/news/gbp-jpy-price-analysis-upside-move-awaits-bullish-cross-breakout-near-15050-202110040330

Number of Lots: Required Margin: Risk Management (50%): Potential Profit/Loss 151.63
1 € 3,894.08 € 1,947.04 € 481.55
5 € 19,470.40 € 9,735.20 € 2,407.77
10 € 38,940.81 € 19,470.40 € 4,815.53
25 € 97,352.02 € 48,676.01 € 12,038.83
50 € 194,704.05 € 97,352.02 € 24,077.67

The above chart and any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material.

Asian Stock Market: Trades mixed as risk sentiment sours, Hang Seng tumbles 2%

Asian stocks continue to perform under pressure amid mixed concerns on China’s Evergrande default risk, interest rate hike signals from major central banks, and the concerns of the Delta variant of the coronavirus risk.

MSCI’s broadest index of Asia-pacific shares outside Japan declined 0.3%. The index marked its first quarterly fall in six quarters.

The Shanghai Composite Index will be closed until Thursday for the National Day holiday, South Korea’s market remains closed too. Japan’s Nikkei fell more than 1%, extending the losses for the fifth straight session.

Hong Kong’s Hang Seng fell 1.9% after trading in shares of debt-ridden China Evergrande was suspended after it missed a key interest payment on its offshore debt obligation in the previous month.

The ASX 200 gained 1.07% following the progress in the battle against COVID-19. Traders are waiting for the Reserve Bank of Australia’s (RBA) interest rate decision to be announced on Tuesday.

Source: https://www.fxstreet.com/news/asian-stock-market-trades-mixed-as-risk-sentiment-sours-hang-seng-tumbles-2-202110040523

According to Anil Panchal (Analyst at FXStreet 3rd party source) the CRUDE OIL is long positions above $76.25 with target at $76.91

Past performance is not a guarantee of future performance

Source: https://www.fxstreet.com/news/wti-price-analysis-sellers-lurk-around-7580-ahead-of-opec-verdict-202110040450

Number of Lots: Required Margin: Risk Management (50%): Potential Profit/Loss 76.91
1 € 657.33 € 328.66 € 568.97
5 € 3,286.64 € 1,643.32 € 2,844.83
10 € 6,573.28 € 3,286.64 € 5,689.66
25 € 16,433.19 € 8,216.59 € 14,224.14
50 € 32,866.38 € 16,433.19 € 28,448.28

The above chart and any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material.

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