Forex Today: Markets optimistic ahead of the US Nonfarm Payroll report

Valeria Bednarik FXStreet

What you need to know on Friday, October 10:

Markets were in a better mood on Thursday, amid news that US Senate majority leader Chuck Schumer announced an agreement on extending the debt ceiling by $408 billion until early December.

Also, gas prices declined in Europe, taking off some of the pressure seen these days. Gas prices soared to records this week amid supply concerns, easing today after US President Vladimir Putin said it would consider increasing gas supplies. Putin said to be thinking about a “carefully” possible increase in gas supplies, as the current hike in prices is not beneficial for Russia. “The high prices do not meet Russia's interests and the market needs to be stabilized as soon as possible,” Deputy Prime Minister Alexander Novak added.

Crude oil prices initially fell, but finished the day with substantial gains, with WTI trading at around $78.80 a barrel at the end of the day.

Gold traded with a softer tone amid dominant risk appetite, although given the decreased dollar’s demand, the bright metal held within familiar levels. Spot gold settled at around $1,756 a troy ounce.

The EUR/USD pair held around 1.1550, unable to take advantage of the broad dollar’s weakness, as dismal EU data keeps undermining demand for the shared currency. GBP/USD posted a modest advance and settled around 1.3620. Commodity-linked currencies were the best performers, reaching fresh weekly highs. AUD/USD trades around 0.7310 while USD/CAD hovers around 1.2540.

Safe-haven currencies edged lower against the greenback, as US government bond yields recovered toward the upper end of their weekly range. Also, global equities posted substantial gains.

Market attention now shifts to the US Nonfarm Payroll report. US Federal Reserve chief Jerome Powell has said that a good employment report could be enough to convince him on tapering, hence the relevance of the figures.

Bitcoin targets $60,000 next as BTC enters new leg up in bull market

Like this article? Help us with some feedback by answering this survey:

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

AUD/USD breaks 0.7000 as RBA inflation warning fuels two-week high

The Australian Dollar registers solid gains versus the Greenback, climbing above 0.7000 and hitting a two-week high of 0.7017 as broad US Dollar weakness pushes AUD/USD above 0.7000 amid a light economic docket in both Australia and the US.

USD/JPY flatlines near 158.50 as markets seek direction

USD/JPY steadies around 158.50 in the Asian trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of Japan’s National Consumer Price Index inflation data later on Friday. Meanwhile, elevated US bond yields provide some support to the US Dollar against the Japanese Yen.

Gold just failed at $4,150. This is the next stop

Gold prices trade without a clear direction on Tuesday, hovering around the $4,170 region per troy ounce and still struggling to regain upside traction following Monday’s pullback. In the meantime, lower US Treasury yields and a marked pullback in the US Dollar come in tandem with the yellow metal’s price action.

Bitcoin resumes Nasdaq correlation as macro pressures threaten $82,500 support

Bitcoin's (BTC) correlation with the Nasdaq is rising again after last week's decline alongside tech stocks, even as macro pressures place the $82,500 support at risk. In a report on Tuesday, K33 Research highlighted that Bitcoin has resumed its correlation with the tech-heavy Nasdaq after last week's price movements.

SpaceX's earnings don't matter. What they unlock does

The Elon Musk-founded SpaceX reports third-quarter results after Tuesday's session. The figure that decides the next month for the stock isn't in them. On Thursday, the second full trading day after the release, up to 1.3 billion shares held by employees and early investors become eligible for sale.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.