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07.10.2022 Market Report


EUR/USD continues to trade in a narrow range at around 0.9800 during the European trading hours on Friday. The data from Germany showed that Retail Sales and Industrial Production contracted by 1.3% and 0.8%, respectively, in August. Eyes on US jobs report.


GBP/USD is attempting a bounce but remains capped below 1.1200. Risk-off flows dominate amid mixed US data and ahead of US NFP.


The USD/JPY pair is oscillating above the critical hurdle of 145.00 and is expected to sustain above the same by shifting its auction profile higher. The asset is expected to remain in the grip of bulls as the market sentiment is advocating a risk-aversion theme amid geopolitical tensions. Also, the upcoming event of the US Nonfarm Payrolls (NFP) has kept the risk-perceived currencies on the tenterhooks.


The AUD/USD pair has sensed selling pressure around 0.6432 and is expected to conclude its pullback move. The asset is likely to return to the 0.6400 mark as odds for a 75 basis point (bps) rate hike by the Federal Reserve (Fed) dramatically. Meanwhile, the risk-off sentiment is getting its traction back as S&P500 has surrendered its rebound move.


NZD/USD came under selling pressure again on Thursday after making a fresh high for the week so far up at 0.5813, only to succumb to higher US yields and a rampant greenback that took revenge on its counterparts into the final seasons for the week. 


The USD/CAD pair has rebounded firmly after hitting an intraday low of 1.3726 in the Tokyo session. The asset is oscillating around 1.3750, at the press time, and is expected to overstep the same confidently as the market sentiment has turned extremely sour amid soaring hawkish Federal Reserve (Fed) bets. Also, the S&P500 has eased off its entire gains recorded in the Tokyo session.


The USD/CHF pair has slipped below the 0.9900 mark after sensing a loss in upside momentum. On a broader note, the asset is oscillating in a range of 0.9887-0.9913 and is expected to deliver an explosion of the same.


Oil prices fell on Friday as markets awaited more economic cues from a closely-watched U.S. payrolls report, but were headed for strong weekly gains after the OPEC+ announced its biggest supply cut since the 2020 COVID pandemic.


Gold price is moving back and forth in a narrow range above $1,700, struggling for a clear directional bias. Investors have moved into caution trading while the US dollar clings to recent gains alongside the Treasury yields in the run-up to the NFP showdown.

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