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Market Review 08-10-21

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Forex Today: Markets optimistic ahead of the US Nonfarm Payroll report

What you need to know on Friday, October 8:

Markets were in a better mood on Thursday, amid news that US Senate majority leader Chuck Schumer announced an agreement on extending the debt ceiling by $408 billion until early December.

Also, gas prices declined in Europe, taking off some of the pressure seen these days. Gas prices soared to records this week amid supply concerns, easing today after US President Vladimir Putin said it would consider increasing gas supplies. Putin said to be thinking about a “carefully” possible increase in gas supplies, as the current hike in prices is not beneficial for Russia. “The high prices do not meet Russia’s interests and the market needs to be stabilized as soon as possible,” Deputy Prime Minister Alexander Novak added.

Crude oil prices initially fell, but finished the day with substantial gains, with WTI trading at around $78.80 a barrel at the end of the day.

Gold traded with a softer tone amid dominant risk appetite, although given the decreased dollar’s demand, the bright metal held within familiar levels. Spot gold settled at around $1,756 a troy ounce.

The EUR/USD pair held around 1.1550, unable to take advantage of the broad dollar’s weakness, as dismal EU data keeps undermining demand for the shared currency. GBP/USD posted a modest advance and settled around 1.3620. Commodity-linked currencies were the best performers, reaching fresh weekly highs. AUD/USD trades around 0.7310 while USD/CAD hovers around 1.2540.

Safe-haven currencies edged lower against the greenback, as US government bond yields recovered toward the upper end of their weekly range. Also, global equities posted substantial gains. Market attention now shifts to the US Nonfarm Payroll report. US Federal Reserve chief Jerome Powell has said that a good employment report could be enough to convince him on tapering, hence the relevance of the figures.

Source: https://www.fxstreet.com/news/forex-today-markets-optimistic-ahead-of-the-us-nonfarm-payroll-report-202110071933

According to Anil Panchal (Analyst at FXStreet – 3rd party source) the USDCHF is long positions above 0.9302 with target at 0.9341

Past performance is not a guarantee of future performance

Source: https://www.fxstreet.com/news/usd-chf-price-analysis-crosses-weekly-resistances-line-to-poke-09300-202110080543

Number of Lots: Required Margin: Risk Management (50%): Potential Profit/Loss 0.9341
1 € 2,888.50 € 1,444.25 € 364.49
5 € 14,442.52 € 7,221.26 € 1,822.43
10 € 28,885.04 € 14,442.52 € 3,644.86
25 € 72,212.59 € 36,106.30 € 9,112.15
50 € 144,425.19 € 72,212.59 € 18,224.30

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.

Wall Street Close: US debt ceiling concerns, upbeat data favor stock buyers ahead of NFP

US shares mark another positive day by the end of Thursday’s North American session.

The risk-on mood takes clues from optimism surrounding US debt limit extension and an easing in gas prices, not to forget upbeat data at home. However, cautious sentiment ahead of the key data/events, including the US Nonfarm Payrolls (NFP), China’s return to trading and US Congress vote on the debt filibuster, probe the bulls.

A monthly low of the US Weekly Jobless Claims and reflation fears, as cited by the Cleveland Federal Reserve Bank President Loretta Mester, back the Fed tapering concerns ahead of the key US jobs report for September and adds to the trading filters.

Against this backdrop, Dow Jones Industrial Average (DJI) gains 0.98% on a day, or 338 points to 34,754, whereas S&P 500 Futures add 0.83% intraday at the end of Thursday’s trading. Above all, the tech-heavy Nasdaq’s 1.05% gains, or 152 points to 14,654 gains the market’s attention.

It’s worth noting that the US 10-year Treasury yields were up 5.2 basis points (bps) to 1.576% at the latest.

Although Republicans jostled in a closed-door meeting to not let the Democrats easily pass the bill relating to a $408 billion debt limit extension until December, the latest updates from Bloomberg’s Erik Wasson keep markets hopeful. The Bloomberg reported quotes GOP Whip John Thune as saying, “debt limit bill will pass tonight. GOP will provide at least 10 votes to end filibuster.”

Elsewhere, Russian support to ease the gas prices may be due to their interest in the low energy bill, tamed energy bulls and favored the market sentiment. Furthermore, headlines suggesting recently improving relations between Washington and Beijing also added to the risk-on mood.

Talking about stock-specific moves, Helen of Troy and Aspen Technology had notable upside moves while Pinnacle West Capital became the worst performer of the S&P 500.

Looking forward, US Congress updates, China’s reaction to the latest fundamentals may entertain traders but not above the US jobs report for September that paves the way for the Fed’s tapering.

Source: https://www.fxstreet.com/news/wall-street-close-us-debt-ceiling-concerns-upbeat-data-favor-stock-buyers-ahead-of-nfp-202110072221

According to Anil Panchal (Analyst at FXStreet 3rd party source) the SILVER is short positions below $22.39 with target at $22.18

Past performance is not a guarantee of future performance

Source: https://www.fxstreet.com/news/silver-price-analysis-xag-usd-keeps-pullback-from-100-ema-around-2250-202110080046

Number of Lots: Required Margin: Risk Management (50%): Potential Profit/Loss 22.18
1 € 194.02 € 97.01 € 909.88
5 € 970.10 € 485.05 € 4,549.39
10 € 1,940.21 € 970.10 € 9,098.79
25 € 4,850.52 € 2,425.26 € 22,746.97
50 € 9,701.04 € 4,850.52 € 45,493.93

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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