This is what you need to know to trade today Thursday October 6:
After another day of volatility on Wednesday, financial markets remain relatively calm early Thursday as investors reassess their positioning ahead of Friday’s expected NFP US jobs report. The dollar index remains in negative territory below 111.00, US stock index futures are trading flat and the 10-year bond yield fluctuates above 3.7%. Later in the session, the data from euro zone retail sales and the minutes of the European Central Bank’s monetary policy meeting could generate new momentum. The US economic docket will include weekly initial jobless claims and some speeches from FOMC policymakers.
Risk aversion in the markets, amid escalating geopolitical tensions, helped the dollar erase some of the losses it suffered against its main rivals earlier in the week. Also, upbeat ADP private sector employment data and ISM services PMI report gave the dollar an additional boost. During the American session, the Fed’s aggressive comments revived expectations of a new big rate hike in November. According to the CME Group’s FedWatch tool, markets are pricing in a nearly 70% chance of a 75 basis point Fed rate hike in November.
In the meantime, OPEC + announced that it has decided to reduce crude oil production by 2 million barrels per day from November. In response, the White House said US President Biden was disappointed by the group’s “short-sighted” decision. The barrel of West Texas Intermediatealready up 10% this week, is now trading modestly higher on the day at $88.25.
Following its failed attempt to break above parity on Wednesday, the EUR/USD looks to have entered a consolidation phase slightly above 0.9900 early on Thursday.
The GBP/USD It snapped a six-day winning streak on Wednesday but managed to close above 1.1300. In the absence of any big impacting macro data releases from the UK, the pair is trading in a tight range around 1.1330 in European morning. Later, UK and EU officials are expected to resume the debate on the Northern Ireland protocol.
The Prayed suffered heavy losses, but buyers successfully defended $1,700 on Wednesday. XAU/USD is trying to regain its upside momentum and is now moving modestly higher from above $1,720.
The pair USD/JPY it extended its sideways trend below 145.00 and failed to make a decisive move in either direction. The pair remains within its 10-day range around 144.00.
On Wednesday, the Bitcoin failed to capitalize on Tuesday’s gains, but ended up closing the day above the key $20,000 level, before entering a consolidation phase early on Thursday. The ethereum continues to rise towards $1,400 after having a hard time finding a direction on Wednesday.
Source: Fx Street
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