Happy Columbus Day!

Friday jobs report, Indexes closed in the green, Washington decided to temporarily raise the debt ceiling and much more over last week.

We’ll keep it short today, as we know some of you might have the day off!

Let’s dive in.

What moved the markets?

US labor market data varied last week, as the economy added only 194,000 jobs in September against the expected 490,000, while the August reading was revised to rise to 366,000 jobs. Unemployment was at its lowest since March 2020 at 4.8%, and the wage rate rose by 0.6% monthly. The US dollar witnessed a noticeable decline while gold edged higher.

The New Zealand dollar was one of the worst-performing currencies against the US dollar last week although the RBNZ lifted rates by 25 basis points and hinted at the “further removal of monetary policy stimulus”. Given the latest backdrop of ongoing lockdowns in New Zealand and slowing economic growth elsewhere, investors are becoming less bullish about the prospect of aggressive rate hikes by the RBNZ.

Oil prices continued their gains for the seventh consecutive week even after OPEC+ affirmed its plan to gradually raise production by about 400,000 barrels per day in November. West Texas crude recorded its highest since November 2014, while Brent crude rose to its highest since October 2018.

DXY – and Index to watch

NFP brought a few days of consolidation and quite a few liquidities run if we take a closer look on 4h or 1h charts for the US Dollar. With the news not pushing the Index in any direction, we are not changing the bias either.

Current highs being attacked and pushed through makes our target of 95.00 very close and reachable within a period of few weeks.

What does it mean for us traders? Continuation to the downside for foreign currency pairs such as EurUsd, GbpUsd, UsdCad, etc.