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08.10.2021 Market Report


In opinion of FX Strategists at UOB Group, EUR/USD could still grind lower to the 1.1500 region in the next weeks.


GBP/USD remains pressured on a day, pares the first weekly gains in five. French MP threatens UK over fishing row, EU braces for new NI protocol proposals.


USD/JPY is looking to build onto Thursday’s solid recovery, with all eyes on the 112.00 figure, as investors remain cheerful heading into the all-important US NFP release.


AUD/USD has wiped out early gains and trades mildly offered during mid-Asia this Friday, as investors digest the latest discouraging news from China’s troubled property sector amid the return of full markets.


NZD/USD refreshes intraday high around 0.6950, up 0.35% on a day following China’s Caixin Services PMI data release during early Friday.


USD/CAD trades mixed near 1.2550, bouncing off monthly bottom ahead of Friday’s European session.

The loonie pair struggles to justify the mixed factors ahead of the key jobs report for September from the US and Canada. That said, the quote dropped the previous day as strong oil prices joined the risk-on mood to weigh on the US dollar.


USD/CHF buyers cheer an upside break of a one-week-old resistance line, now support, while edging higher around 0.9300 as European traders brace for Friday’s bell.


WTI crude oil has risen to $78.50 per barrel, the most daily gain since mid-June. Upbeat market mood and announcements from the US Energy Department boosted the energy benchmark. However, the oil purchasers are concerned about the recent cautious mood, which is linked to the US Congress voting on a debt ceiling extension and pre-NFP nervousness.


The bulls reclaim control of the gold price, which has risen to near $1750 after a brief decline due to weakening risk sentiment. Concerns about China’s property market are lowering market sentiment, spurring safe-haven flows into gold and US bonds. The resulting drop in US Treasury yields is assisting the gold price recovery.