STATE OF THE MARKETS
Dollar in limbo ahead of NFP. Global equities climbed higher on Thursday after news hit the wires that the US senate reached a short-term debt limit extension to avoid government shutdown. Nasdaq (+1.05%), FTSE UK (+1.17%), Nikkei (+1.66%) and Shanghai (+0.27%) all closed in green, while Dollar was little changed ahead of the NFP Friday, even when the 10Y yield has hit 159 basis points at writing.
In the commodities market, crude took a dip to $74.95 before settling higher around $78.30/bl after Russia reassured Europe its willingness to increase supply in the coming winter shortage. Gold took the same fate as Dollar as the yellow metal was little changed flirting around the $1750-60 band. Elsewhere, iron ore for December climbed higher, around $116.65/tn as markets embraced the debt ceiling extension.
In the FX space, Aussie, Loonie and Yen were seen synching in short to medium term accounts as Loonie seized the helm of demand from King Dollar in the long term accounts. Sentiments seemed bullish in the near term as Yen and Swiss were broadly on offers, though long term investors remained cautious as Swiss continued in the bidding list. Markets expect 450k jobs added vs 235k previous with unemployment rate reduced from 5.2% to 5.1% on Friday.
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