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Market Review 07-10-21

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Forex Today: Sentiment improves modestly on US debt news

What you need to know on Thursday, October 7:

Major pairs traded alongside the market’s sentiment. Equities fell in Asia and Europe, weighed by growth-related concerns. Bottlenecks concerns were exacerbated by a 40% surge in UK gas prices as the energy crisis worsened. Mounting inflationary pressures added to the dismal mood.

Ahead of Wall Street’s close, the market’s mood improved on news indicating US Senate Republican Leader Mitch McConnell is planning to propose a short-term extension, until December, to the debt limit. Wall Street trimmed intraday losses and finished the day mixed.

Dismal EU data weighed on the shared currency, with EUR/USD settling at 1.1550. GBPUSD ended the day in the red around 1.3590. Commodity-linked currencies trimmed most of their intraday losses alongside US indexes, with AUD/USD now trading in the 0.7270 price zone and USD/CAD around 1.2590.

The USD/JPY pair is steady in the 111.40 area, while USD/CHF settled at 0.9270.

Gold posted a modest intraday gain, changing course after reaching a fresh weekly low, ending the day at $1,764 a troy ounce. Crude oil prices retreated from their recent highs, with WTI ending the day at $77.00 a barrel

The US ADP survey come in at 568K, better than anticipated, hinting at a solid US Nonfarm Payroll report.

Source: https://www.fxstreet.com/news/forex-today-sentiment-improves-modestly-on-us-debt-news-202110062000




According to Anil Panchal (Analyst at FXStreet – 3rd party source) the GOLD is short positions below $1,748.99 with target at $1,737.81

Past performance is not a guarantee of future performance

Source: https://www.fxstreet.com/news/gold-price-forecast-xau-usd-probes-hidden-bearish-divergence-above-1-750-on-firmer-sentiment-202110062304

Number of Lots: Required Margin: Risk Management (50%): Potential Profit/Loss 1737.81
1 € 7,569.42 € 3,784.71 € 967.71
5 € 37,847.10 € 18,923.55 € 4,838.57
10 € 75,694.19 € 37,847.10 € 9,677.14
25 € 189,235.48 € 94,617.74 € 24,192.85
50 € 378,470.96 € 189,235.48 € 48,385.70

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.

S&P 500 Futures track Wall Street gains on optimism over US debt ceiling vote, Sino-American ties

S&P 500 Futures portray a risk-on mood with half a percent upside to refresh the intraday top with 4,376 during early Thursday. In doing so, the stock derivative follows Wall Street performance amid positive headlines from US politics, as well as on the Sino-American front.

US Senate Republican Leader Mitch McConnell’s support to the short-term extension of the US debt ceiling becomes the key positive for the risk appetite of late. The policymakers are up for voting on Thursday. Given the Democrats’ push for the agreement and McConnell’s recent shift, the vote may have more assents and can favor the risk-on mood on passing.

It’s worth noting, however, that some on the floor still doubt the passage as Republicans don’t like the Democratic proposals for stimulus and hence it will be an interesting political play going forward.

On the different page, Beijing-based media relies on the latest communications between US President Joe Biden and his Chinese counterpart Xi Jinping to cite the improvement in the US-China ties. Biden and Xi Jinping previously respected the Taiwan agreement and chatters are also loud that they meet, virtually, by the year-end. Furthermore, the US also considered exclusion request for China imports, which is under public preview.

On the contrary, Secretary of State Antony Blinken’s dislike for China’s action over the Taiwan issue and a push to act responsibly in the matters relating to Evergrande probe the optimists.

It’s worth noting that a three-month high US ADP Employment Change fuel hopes for a firmer US Nonfarm Payrolls (NFP), up for publishing on Friday, as well as Fed tapering. This in turn helps the US Treasury yields to stay firmer and put a carpet under the US Dollar Index (DXY), not to forget challenging equities.

Looking forward, China’s absence and a light calendar may bore traders in Asia but the weekly prints of US Jobless Claims and the voting on the US debt filibuster will be important to watch going forward.

Source: https://www.fxstreet.com/news/sp-500-futures-track-wall-street-gains-on-optimism-over-us-debt-ceiling-vote-sino-american-ties-202110070202

According to Anil Panchal (Analyst at FXStreet 3rd party source) the SILVER is long positions above $22.79 with target at $22.97

Past performance is not a guarantee of future performance

Source: https://www.fxstreet.com/news/silver-price-analysis-xag-usd-struggles-to-defend-100-sma-breakout-202110070023

Number of Lots: Required Margin: Risk Management (50%): Potential Profit/Loss 22.97
1 € 197.26 € 98.63 € 779.02
5 € 986.32 € 493.16 € 3,895.09
10 € 1,972.65 € 986.32 € 7,790.18
25 € 4,931.62 € 2,465.81 € 19,475.46
50 € 9,863.24 € 4,931.62 € 38,950.92

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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