Debt ceiling lifted, NFP up next

HEADLINES

 

 

• Dollar trades flat as investors await U.S. jobs data
• EUR/USD retreats to 1.1550 area as USD holds firm on rising T-bond yields
• Gold dips after positive weekly U.S. jobs data lifts yields
• Oil Prices Rebound As U.S. Walks Back Plan To Tap Strategic Petroleum Reserve
• US stocks rally, with the Dow climbing 337 points on debt ceiling optimism
• Stocks rally as stagflation fears, energy prices ease
• Bitcoin hints at $1T market cap retest after price hitting 4-month highs

 

 

FOREX

 

 

Dollar trades flat as investors await U.S. jobs data

 

The dollar barely moved against a basket of currencies on Thursday, as investors awaited the release of U.S. labor market data on Friday that could provide clues to the timing of the Federal Reserve’s next move as it looks to normalize policy. Most major currency pairs clung to familiar ranges, with traders disinclined to place large directional wagers before a key data release.

 

EUR/USD retreats to 1.1550 area as USD holds firm on rising T-bond yields

 

Easing concerns over energy inflation and positive developments toward a temporary solution to the US debt crisis provided a boost risk sentiment and the shared currency managed to find demand on Thursday. However, rising US Treasury bond yields allowed the greenback to limit its losses and force EUR/USD to pare its daily gains.

 

 

COMMODITIES

 

 

Gold dips after positive weekly U.S. jobs data lifts yields

 

Gold fell on Thursday as a drop in U.S. weekly initial jobless claims, ahead of the monthly jobs data later this week, boosted Treasury yields and stoked bets that the U.S. Federal Reserve may soon start winding down its economic support. The number of Americans filing new claims for jobless benefits dropped by the most in three months last week, suggesting the labor market recovery was regaining momentum after a recent slowdown.

 

Oil Prices Rebound As U.S. Walks Back Plan To Tap Strategic Petroleum Reserve

 

The U.S. Department of Energy is walking back previous comments that it was considering a release of the Strategic Petroleum Reserve and a ban on crude oil exports, Bloomberg’s Javier Blas reported on Twitter. According to Blas, the DoE isn’t considering tapping the SPR “at this time”. The news comes shortly after Goldman Sachs estimated that if the DoE released oil from the SPR, it would likely be limited to just 60 million barrels—posing a $3 downside risk to its year-end $90 barrel Brent forecast.

 

 

STOCKS

 

 

US stocks rally, with the Dow climbing 337 points on debt ceiling optimism

 

US stocks rallied on Thursday as investors cheered the announcement that legislators have agreed to raise the federal borrowing limit until December, averting a potentially destructive default on the country's debt. The benchmark S&P 500 edged higher while the tech-heavy Nasdaq also ticked up. The Dow Jones Industrial Average jumped more than 300 points.

 

Stocks rally as stagflation fears, energy prices ease

 

World equity markets rebounded on Thursday after U.S. Senate leaders moved to avert a U.S. debt default, while a global easing in energy prices tempered deepening fears of "stagflation."

European bourses rallied off 2-1/2-month lows and Wall Street jumped as steady crude oil and natural gas prices offered relief after a shock 4% drop in German industrial production highlighted supply chain disruptions.

German output of cars and auto parts slid 17.5% in August due to supply shortages of intermediate products, providing a telling sign of the constraints posed by the combination of rising inflation and moribund growth, or stagflation.

 

 

CRYPTO

 

 

Bitcoin hints at $1T market cap retest after price hitting 4-month highs

 

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD looking decidedly less confident Thursday, down 3% while taking aim at $53,000 — and its $1-trillion market capitalization — before recovering. The pair had hit local highs of $55,800 — its best since before the May miner rout — but it did not take long for over-optimistic markets to show signs of fatigue.

 

 

CHART

 

 

Nasdaq 100 – Daily Candlesticks

Source: GKFX Prime Metatrader 4

NAS100 has found support at a rising trendline connecting the lows since September 2020. Another rising trendline connecting the July, August and September lows. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

 

https://www.fxstreet.com/economic-calendar
https://www.investing.com/news/cryptocurrency-news/bitcoin-hints-at-1t-market-cap-retest-after-price-hitting-4month-highs-2637683
https://www.cnbc.com/2021/10/07/forex-markets-dollar-euro-inflation-concerns.html
https://markets.businessinsider.com/news/stocks/stock-market-news-today-dow-debt-ceiling-optimism-extension-oil-2021-10
https://www.fxstreet.com/news/eur-usd-retreats-to-11550-area-as-usd-holds-firm-on-rising-t-bond-yields-202110071312
https://www.cnbc.com/2021/10/07/gold-markets-dollar-us-economy.html
https://markets.businessinsider.com/news/stocks/oil-prices-rebound-as-us-walks-back-plan-to-tap-strategic-petroleum-reserve-1030851164
https://www.investing.com/news/stock-market-news/asian-shares-rise-on-stronger-global-risk-appitite-as-oil-prices-ease-2636974