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America’s Roundup: Dollar near one-year high,Wall Street surges, Gold dips, Oil eases as U.S. mulls strategic reserve sales-October 8th,2021

Market Roundup

• US Continuing Jobless Claims 2,714K,2,780K forecast, 2,802K previous

• US Jobless Claims 4-Week Avg 344.00K  ,340.00K previous

• US Initial Jobless Claims 326K, 348K forecast, 362K previous

• Canada Sep Ivey PMI 70.4, 66.0 previous

• Canada Sep Ivey PMI n.s.a  64.5,63.8 previous

• US Aug Consumer Credit 14.38B, 17.50B forecast, 17.00B previous

Looking Ahead Economic Data (GMT)

• 23:50 Japan Aug Household Spending (YoY)  -1.5% forecast, 0.7% previous

• 23:50 Japan Aug Household Spending (MoM)  -2.0% forecast, -0.9%              previous

• 01:45 China Sep Caixin Services PMI  46.7  previous

• 05:00 Japan Sep Economy Watchers Current Index  34.7  previous

Looking Ahead - Events, Other Releases (GMT)

•No data ahead

Currency Summaries

EUR/USD: The euro declined on Thursday as  dollar gained on upbeat U.S. jobless claims data. The number of Americans filing new claims for jobless benefits dropped by the most in three months last week, suggesting the labor market recovery was regaining momentum after a recent slowdown, as the wave of COVID-19 infections began to subside. The weekly unemployment claims report from the Labor Department on Thursday, the most timely data on the economy’s health, also showed the number of people on state unemployment rolls plunging to an 18-month low in late September. Immediate resistance can be seen at 1.1572 (50%fib), an upside break can trigger rise towards 1.1604(61.8%fib).On the downside, immediate support is seen at 1.1540(38.2%fib), a break below could take the pair towards 1.1516 (23.6%fib).

GBP/USD: Sterling rose on Thursday as global risk sentiment improved and   prospects of a Bank of England rate hike reduced some downside potential for the currency. Sterling erased all of its strong gains for 2021 in September amid concerns about British economic growth and rising inflation, while the country grappled with a fuel crisis.But by 1845 GMT, the British currency had risen 0.3% to $1.3613 versus the dollar, after it slid on Wednesday back towards its weakest level since December 2020.  Immediate resistance can be seen at 1.3620(50%fib),an upside break can trigger rise towards 1.3665(21DMA).On the downside, immediate support is seen at 1.3553(38.2%fib), a break below could take the pair towards 1.3472(23.6%fib).

USD/CAD: The Canadian dollar rose against the greenback on Thursday as investors cheered a potential deal to avoid a default on U.S. government debt and the Bank of Canada said that the factors driving inflation were more persistent than expected. The loonies  was trading 0.3% higher at 1.2547 to the greenback, after touching its strongest level since Sept. 7 at 1.2540 U.S. crude oil futures   settled 1.1% higher at $78.30 a barrel as the market deemed it unlikely that the United States would release emergency crude reserves or ban exports to ease tight supplies.             .Immediate resistance can be seen at 1.2567 (5DMA), an upside break can trigger rise towards 1.2600 (Psychological level).On the downside, immediate support is seen at 1.2533(38.2%fib), a break below could take the pair towards 1.2478 (50%fib).

USD/JPY: The dollar steadied against yen on Thursday as greenback regained strength ahead of U.S. payrolls data on Friday seen as key to the Federal Reserve’s next move. The U.S. dollar was steady near a one-year high, buoyed by inflation concerns and expectations that the Fed would have to act sooner to normalise policy.Meanwhile, a strong showing of private jobs in September ahead of Friday’s employment numbers fuelled bets that the Fed could start tightening monetary stimulus soon. The dollar gained 0.25% to 111.19 yen. Strong resistance can be seen at 111.35(Oct 7th hgh), an upside break can trigger rise towards 111.76(23.6%fib).On the downside, immediate support is seen at 111.26(38.2%fib), a break below could take the pair towards 110.85(61.8%fib).

Equities Recap  

European stocks marked their best showing since July on Thursday, as easing oil and gas prices offered relief to investors worried about runaway inflation, while positive earnings updates added to the upbeat sentiment.

UK's benchmark FTSE 100 closed up by  1.17 percent, Germany's Dax ended up  by 1.84 percent, France’s CAC finished the day up by 1.65 percent.                

U.S. stocks climbed on Thursday in a broad-based rally led by heavyweight technology stocks, after a temporary truce in the debt-ceiling standoff in Congress relieved concerns of a possible government debt default later this month.

Dow Jones closed up by 0.98  percent, S&P 500 closed up by 0.83  percent, Nasdaq closed up by 1.05 % percent.

Treasuries Recap

U.S. Treasury yields rose on Thursday as market positioning ahead of the September employment report and a risk-on sentiment sparked by a stopgap debt ceiling plan in Congress pushed debt prices lower.

 The benchmark 10-year yield was last up 4.7 basis points at 1.5712%.

Commodities Recap

Gold fell on Thursday as a drop in U.S. weekly initial jobless claims, ahead of the monthly jobs data later this week, boosted Treasury yields and stoked bets that the U.S. Federal Reserve may soon start winding down its economic support.

Spot gold was down 0.3% at $1,757.30 per ounce by 13:34 p.m. EDT (1734 GMT). U.S. gold futures settled 0.2% lower at $1,759.2.

Oil prices extended losses from the previous session on Thursday, as the United States said it was considering selling oil from its strategic reserves and as Russia said it was ready to stabilise the natural gas market.

Brent crude prices were down 16 cents, or 0.2%, at $80.92 a barrel by 1306 GMT, after touching a session low of $79.08. WTI crude futures fell 30 cents, or 0.4%, to $77.13 a barrel, having hit a session low of $74.96.


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