1. Forex Market Insight
Today’s market was a fairly typical dull one ahead of the non-farm payrolls data release.
The euro will most likely remain stuck in a range like this until the jobs report comes out, but even then, any weakness in the dollar should subside given that a tapering of quantitative easing in November looks near certain.
As the shift from pandemic crisis policy gains momentum, the Fed has signaled that it may begin reducing monthly bond purchases as early as November, followed by a rate hike.
(EUR/USD 1-hour chart)
Today, we pay attention to the 1.1554-line of support. If the euro breaks below the 1.1554-line, it will open up a further downside potential. At that time, pay attention to the 1.1501-line of support as it may open up a further upside potential.
GBP Intraday Trend Analysis
As global risk sentiment improves slightly, the prospect of a rate hike by the Bank of England reduces some of the downside potential of the pound.
(GBP/USD 1-hour chart)
The pound today is focused on the suppression of 1.3669, and the support below 1.3522 and 1.3409.
2. Precious Metals Market Insight
Gold prices fell slightly yesterday as initial jobless claims fell more than expected last week, which boosted U.S. Treasury yields and raised bets that the Federal Reserve may soon start tapering economic support. At the same time, rising stocks dampened risk aversion, also formed a bearish trend for gold prices.
Intraday, focus on the U.S. September non-farm payrolls data, which may be negative for gold prices.
(Gold 1-hour chart)
Today, gold is still paying attention to the direction of the breakthrough in the 1745 – 1768 range. If it breaks through 1768 upwards, it will open up a further upside potential. At that time, it will pay attention to the suppression of 1782 and 1801. If it falls below the 1745-line, it will open up a further downside space. With this, we will pay attention to the support of 1740 and 1724.
3. Commodities Market Insight
WTI Crude Oil
Oil prices stopped falling and rebounded, with WTI crude futures closing up 1.1% as the U.S. Energy Department said on Thursday, 7th October 2021, that there are no plans to release the Strategic Petroleum Reserve to curb rising gasoline prices.
Crude oil prices fell by 2.7% at one point after the U.S. Energy Secretary raised the possibility of releasing the Strategic Petroleum Reserve, according to a report in the Financial Times on Wednesday, 6th October 2021.
A U.S. Energy Department spokesman said, no ban on crude oil exports was being sought. With this, the market focus now returns to the global shortage of natural gas supplies, which is bound to raise demand for crude oil for power generation this winter.
Meanwhile, the Biden administration has been increasingly vocal about its concerns towards high energy prices. The West Texas Intermediate futures for November delivery rose by 87 cents to settle at $78.30 a barrel, while Brent futures for December delivery rose by 87 cents to settle at $81.95 a barrel.
(Crude oil 1-hour chart)
Today, oil prices are focused on the suppression of the 80-line. Once the price rises and falls, the bottom line will focus on the support at 78.30 and 76.89.
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