This is what you need to know to trade today Monday October 10:
Investors seek shelter early on Monday and risk-sensitive assets are struggling to find demand. After closing the previous week on a strong note following the upbeat US jobs report for September, the DXY dollar index is higher towards 113.00. As a reflection of risk aversion in the markets, US stock index futures trade in negative territory. US bond markets will be closed for the US Columbus Day holiday, and trading could remain light in the second half of the day. The data for the Sentix investor confidence corresponding to the month of October.
The US Bureau of Labor Statistics reported Friday that nonfarm payrolls NFP increased by 263,000 in September. This reading beat market expectations for a 250,000 rise. In addition, the publication showed that the unemployment rate dropped to 3.5% from 3.7% in August. The 10-year US Treasury bond yield gained more than 1% and advanced to the 3.9% zone after the data and the dollar continued to outperform its rivals.
The Russian President, Vladimir Putinsaid over the weekend that the attack on the bridge over the Kerch Strait in Crimea was an act of terrorism by Ukraine. Early in the morning in Europe, the news about the explosions in kyiv caused by the Russian missile attacks forced markets to look for safe haven alternatives. Meanwhile, the Chinese authorities reportedly decided to partially close the Changning and Putuo districts in Shanghai due to the control and prevention of the coronavirus.
The EUR/USD remains under modest downside pressure on Monday and continues to move lower towards 0.9700. The head of the policy of the European Central Bank (ECB) and the Bank of France, Francois Villeroy de Galhau, said that the ECB would take two or three years to bring inflation back to the 2% target.
The GBP/USD It trades in a tight range below 1.1100 early on Monday, following last Friday’s sharp drop. The Bank of England announced on Monday that it will launch a temporary extension of the collateral repo facility to support the functioning of the marketbut the novelty does not seem to have a significant impact on the behavior of the British pound against its rivals.
The pair USD/JPY reached its highest level since the Bank of Japan intervention at 145.66 during the Asian session, but quickly erased its gains. The pair is now trading unchanged on the day at 145.30.
The Prayed faced fresh technical selling with a drop below $1,700 and extended its decline below $1,690.
The Bitcoin it fluctuates in a tight range below $20,000 as it has failed to stage a bounce over the weekend. The ethereum It is struggling to make a decisive move in either direction and is moving up and down around $1,300.
Source: Fx Street
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