Forex Today: Sentiment improves modestly on US debt news

Valeria Bednarik FXStreet

What you need to know on Thursday, October 7:

Major pairs traded alongside the market’s sentiment. Equities fell in Asia and Europe, weighed by growth-related concerns. Bottlenecks concerns were exacerbated by a 40% surge in UK gas prices as the energy crisis worsened. Mounting inflationary pressures added to the dismal mood.

Ahead of Wall Street’s close, the market’s mood improved on news indicating US Senate Republican Leader Mitch McConnell is planning to propose a short-term extension, until December, to the debt limit. Wall Street trimmed intraday losses and finished the day mixed.

Dismal EU data weighed on the shared currency, with EUR/USD settling at 1.1550. GBPUSD ended the day in the red around 1.3590. Commodity-linked currencies trimmed most of their intraday losses alongside US indexes, with AUD/USD now trading in the 0.7270 price zone and USD/CAD around 1.2590.

The USD/JPY pair is steady in the 111.40 area, while USD/CHF settled at 0.9270.

Gold posted a modest intraday gain, changing course after reaching a fresh weekly low, ending the day at $1,764 a troy ounce. Crude oil prices retreated from their recent highs, with WTI ending the day at $77.00 a barrel

The US ADP survey come in at 568K, better than anticipated, hinting at a solid US Nonfarm Payroll report.

Ethereum price to set new all-time high at $4,500 as ETH bulls take over

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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.

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