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04.10.2021 Market Report


According to FX Strategists at UOB Group, a drop to 1.1530 in EUR/USD now seems to have lost some traction.


Having failed to clear a strong supply zone near 1.3580 recently, GBP/USD has turned south starting out a fresh week, now consolidating near mid-1.3500s.

The renewed Brexit concerns, fuel supply issues and a broad rebound in the US dollar are weighing negatively on the cable, as investors digest the latest China Evergrande story.


USD/JPY flirts with 111.00, intraday top 111.11, as European traders brace for Monday’s bell. The risk barometer pair previously dropped amid softer US Treasury yields weighing on the US dollar while the latest rebound could be linked to the shift in sentiment.


In light if the recent price action, AUD/USD is now expected to trade between 0.7210 and 0.7320 in the next weeks.


NZD/USD has turned south after meeting stiff resistance near the 0.6950 region once again.

In doing so, the spot has erased early gains and now drops 0.16% on the day to trade at 0.6931. The kiwi got sold-off into a fresh risk-aversion wave that emerged on the renewed China Evergrande fears.


USD/CAD licks its wounds around 1.2630, down 0.10% intraday, ahead of Monday’s European session.

In doing so, the Loonie pair stays negative for the third consecutive day but an ascending support line from early September defends buyers.


The USD/CHF extends the previous week’s declines on Monday. After testing the high above 0.9560, the pair failed to preserve the momentum and record a fall of more than 70-pips in three sessions. At the time of writing, USD/CHF is trading at 0.9292, down 0.19% for the day.


CME Group’s advanced prints for crude oil futures markets noted traders scaled back their open interest positions for the second session in a row on Friday, this time by around 1.8K contracts. In the same line, volume retreated by nearly 321K contracts, partially reversing the previous build.


XAU/USD is pointing to drops in the short and medium terms.