Forex Today: Markets optimistic ahead of the US Nonfarm Payroll report
|What you need to know on Friday, October 10:
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.
Bitcoin targets $60,000 next as BTC enters new leg up in bull market
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.