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Powell Pumps Crypto, OPEC+ Meet

"It's not always easy to do what's not popular, but that's where you make your money. Buy stocks that look bad to less careful investors and hang on until their real value is recognized." - John Neff

 

 

HEADLINES

 

 

  • U.S. dollar slides for 2nd day, but outlook stays upbeat
  • OPEC+ Will Drive Oil Prices Over Coming Months, Says Vitol
  • Gold Makes Modestly Higher Oct. Debut
  • Bruised market eyes Treasury yields to gauge stocks' path
  • Amazon-backed EV maker Rivian discloses nearly $1 bln losses in IPO filing
  • Bitcoin climbs to highest in nearly two weeks
  • GBP/USD: Three factors underpin the pound, BoE to provide an additional boost – Citibank
  • CHART: Ethereum

 

 

FOREX

 

 

U.S. dollar slides for 2nd day, but outlook stays upbeat

 

The dollar fell for a second straight session on Friday, tracking declines in U.S. Treasury yields, as investors booked profits after recent sharp gains, though the decline was viewed as temporary. For the week, the dollar index posted its largest percentage gain since late August, as investors looked to the Federal Reserve’s reduction of asset purchases in November and a possible rate hike late next year.

 

 

COMMODITIES

 

 

OPEC+ Will Drive Oil Prices Over Coming Months, Says Vitol

 

The OPEC+ cartel’s production policy will be the main factor influencing oil prices over the coming months, according to Vitol Group. There’s little chance of Iranian barrels returning to global markets this year and U.S. shale producers aren’t investing enough to raise output quickly, the world’s largest independent oil trader said.

 

Gold Makes Modestly Higher Oct. Debut

 

Gold made a modest gain as trading for October began, joining most risk assets trying to recover from September’s hellish ride. A retreat in both the dollar and U.S. bond yields also helped gold post a second straight week of gains, small as they may be. For the week, it managed a 0.4% gain despite Thursday’s 2% trouncing that contributed to September’s torrid loss of 3.4%.

 

 

STOCKS

 

 

Bruised market eyes Treasury yields to gauge stocks' path

 

Investors are focusing on Treasury yields as a key factor in determining how stocks will fare the rest of the year, after a month in which equities notched their steepest losses since the coronavirus pandemic began. Stocks wobbled as yields on U.S. Treasuries shot to a three-month high, exacerbating worries in a market already unsettled by a nasty fight over the U.S. debt ceiling, the fate of a massive infrastructure spending bill and the meltdown of heavily indebted Chinese property developer China Evergrande Group.

 

Amazon-backed EV maker Rivian discloses nearly $1 bln losses in IPO filing

 

Rivian Automotive, backed by Amazon.com Inc and Ford, disclosed losses of nearly $1 billion in the first half of the year, the electric-vehicle maker's U.S. IPO filing showed on Friday. The company has been investing aggressively in ramping up production of its electric vehicles, including its upscale all-electric R1T pickup truck which was launched last month… The company is currently pursuing a two-track strategy: building electric delivery vans for Amazon and developing an electric pickup and SUV brand aimed at affluent individuals.

 

 

CRYPTO

 

 

Bitcoin climbs to highest in nearly two weeks

 

Bitcoin rose on Friday to its highest level since around mid-September, bolstered in part by seasonal factors as well as supportive comments overall from U.S. Federal Reserve Chairman Jerome Powell on Thursday. In testimony to Congress, Powell said the Fed had no intention of banning cryptocurrencies, in response to a question from House Representative Ted Budd. Some analysts also said October is typically a bullish month for digital assets, with September historically a bearish period for the sector.

 

 

ANALYSIS

 

 

GBP/USD: Three factors underpin the pound, BoE to provide an additional boost – Citibank

 

“Factors supporting GBP currently include subdued UK COVID-19 hospitalizations; UK assets attractive from both valuation and post-COVID economic normalization angles; and receding political risks regarding EU-UK negotiations on the Northern Ireland protocol and no Scottish independence referendum near term.”

“With the Bank of England at its September meeting lowering the bar towards commencing hiking rates as early as November 2021, GBP is likely to get an added boost from UK’s monetary policy outlook which is now well placed to front-run the Fed.”

 

 

CHART

 

 

Ethereum – 4-Hour Candlesticks

Source: GKFX Prime Metatrader 4

ETH/USD has broken above resistance from recent peaks and a downtrend line connecting the early and mid-September peaks. The 20 DMA is immediate resistance. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/gbp-usd-three-factors-underpins-the-pound-boe-to-provide-and-additional-boost-citibank-202110011152
https://www.reuters.com/article/usa-stocks-weekahead/rpt-wall-st-week-ahead-bruised-market-eyes-treasury-yields-to-gauge-stocks-path-idUSL1N2QX2MC
https://www.reuters.com/business/ev-maker-rivian-makes-ipo-filing-public-2021-10-01/
https://www.reuters.com/business/finance/bitcoin-jumps-9-touch-12-day-high-2021-10-01/
https://www.cnbc.com/2021/10/01/forex-markets-dollar-federal-reserve.html
https://finance.yahoo.com/news/opec-drive-oil-prices-over-095632024.html
https://www.investing.com/news/commodities-news/gold-makes-modestly-higher-oct-debut-2632709

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