Forex Today: Quiet start to the week ahead of key data releases

Eren Sengezer FXStreet

Here is what you need to know on Monday, October 11:

The dollar weakness following the disappointing September US jobs report, which showed that Nonfarm Payrolls rose by 194,000 to miss the market expectation of 500,000 by a large margin, remained short-lived. Surging US Treasury bond yields provided support to the greenback and helped it remain resilient against its rivals.

NFP Quick Analysis: Three reasons for dollar bears to party, even if tapering remains intact.

There won't be any high-tier macroeconomic data releases on Monday. The US bond markets will be closed due to Columbus Day but stock markets will operate during normal hours. Nevertheless, the trading action is expected to remain subdued ahead of Wednesday's US inflation data.

Wall Street: US stock futures trade flat on Monday, mirroring a neutral market mood.

Week Ahead on Wall Street (SPY) (QQQ): No jobs, no taper, no rally. Can earnings change things?

USD/JPY: USD/JPY extended last week's rally, which was fueled by the 10-year US T-bond yield's advance to multi-month highs above 1.6%, and reached its strongest level since December 2018 at 112.75. Moreover, the Nikkei 225's impressive more-than-1.5% increase on Monday seems to be putting additional weight on the safe-haven JPY's shoulders.

Gold: Following a sharp upsurge to a fresh two-week high of $1,781 in the early American session on Friday, gold ended up closing the week with small losses at $1,757. Currently, XAU/USD is fluctuating in a tight channel above $1,750.

EUR/USD: The EUR/USD pair registered losses for the fifth straight week and stays relatively quiet below 1.1600 at the start of the week.

GBP/USD: British pound is edging higher in the early European session on Monday and the GBP/USD pair was last seen trading at its highest level since late September at 1.3658. September labour market data from the UK could be the next major catalyst on Tuesday.

AUD/USD: Supported by rising copper prices, the AUD/USD pair opened on a firm footing and closes in on the multi-week high it set at 0.7340 on Friday.

Oil: The barrel of West Texas Intermediate is trading above $80 for the first time since November 2014 after reports suggesting that OPEC+ will refrain from ramping up its oil output.

Cryptocurrencies: Following a quiet weekend, Bitcoin regained its traction and renewed five-month highs above $56,000. Ethereum is up more than 3% on a daily basis and is trading around $3,500.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD onsolidates around mid-1.1800s as traders keenly await FOMC Minutes

The EUR/USD pair struggles to capitalize on the previous day's goodish rebound from the 1.1800 neighborhood, or a one-and-a-half-week low, and consolidates in a narrow band during the Asian session on Wednesday. Spot prices currently trade just below mid-1.1800s, nearly unchanged for the day.

GBP/USD seems vulnerable near mid-1.3500s; UK CPI/FOMC Minutes awaited

The GBP/USD pair struggles to capitalize on the previous day's late rebound from an over one-week low – levels below the 1.3500 psychological mark – and trades with a negative bias for the third consecutive day on Wednesday. The downside, however, remains cushioned as investors seem reluctant to place aggressive directional bets ahead of the release of the latest UK consumer inflation figures and FOMC Minutes.

Gold regains positive traction after Tuesday's over 2% slump as traders await FOMC Minutes

Gold gains some positive traction during the Asian session on Wednesday and recovers a part of the previous day's heavy losses more than 2%, to the $4,843-4,842 region or a nearly two-week low. The intraday move higher could be attributed to repositioning trade ahead of the release of the FOMC Minutes.

Top Crypto Gainers: Jito drops, Morpho holds steady, Convex Finance climbs

Decentralized Finance tokens, including Jito, Morpho, and Convex Finance, rank among the top-performing crypto assets over the last 24 hours. Jito dips on Wednesday after rallying 22% the previous day on the launch of a new mainnet node.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Ripple slides to $1.45 as downside risks surge

Ripple edges lower at the time of writing on Tuesday, from the daily open of $1.48, as headwinds persist across the crypto market. A short-term support is emerging at $1.45, but a buildup of bearish positions could further weaken the derivatives market and prolong the correction.