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The energy crisis and the rise in yields boost the dollar, focus on the employment ADP

This is what you need to know to trade today Wednesday 6 October:

The market mood has soured on Wednesday after a positive Tuesday. Rising energy costs and an upward break in US yields are hitting stocks bidding on the dollar, even against the kiwi, which the rate hike did not help. ADP employment data is in focus after ISM’s upbeat Services PMI. The debt ceiling and stimulus headlines are also in the spotlight. Cryptos go up and gold stabilizes.

Energy crisis: The WTI crude surpasses $ 79, the highest level since 2014 in another response to OPEC + ‘s decision to limit production increases and run no surplus elsewhere. Natural gas prices extend their meteoric rise in Europe and threaten to cripple the recovery. Several European governments want to coordinate their policy of action.

The 10-year US Treasury yields they have touched 1.57%, the highest level since June, and that benefits the US dollar.

The EUR/USD it has fallen below 1.16 again in anticipation of eurozone retail sales. The GBP/USD is fighting around 1.36 before UK Prime Minister Boris Johnson’s speech on his vision for the country. The British Army continues to help bring gasoline to the stations.

NZD / USD it is trading around 0.6920 amid the strength of the greenback and despite the rate hike from the Reserve Bank of New Zealand. The increase in the RBNZ’s borrowing costs from 0.25% to 0.50% was fully included in the price.

US data: The ISM Service Purchasing Managers Index for September surprised to the upside with 61.9 points and with robust data for the subcomponents. The news supported equities on Tuesday before the mood turned sour. The focus on Wednesday is on the ADP private sector jobs report for September, which serves as a significant hint toward Friday’s Non-Farm Payrolls. Contrary to previous months, ADP statistics predicted the general trend last time.

American politics: The clock is ticking in the United States to reach its ceiling of debt in mid-October, and President Joe Biden launched the idea of ​​defaulting on it to break the deadlock, as Republicans remain reluctant to avoid a debt default. Democrats continue to clash over the broad spending bill, with some information pointing that it could drop from 3.5B to about 2 trillion.

The cryptocurrencies advance Wednesday, with Bitcoin topping $ 50,000 and changing hands above $ 51,000 at the time of writing. Ethereum hovers around $ 3,500 and Shiba Inu continues to stand out after a tweet from Elon Musk earlier in the week.

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