General analysis GBPUSD, EURUSD, NZDUSD, AUDUSD, USDCAD, XAUUSD, Brent, WTI for 07.10.2021

On Thursday, the price range in the forex market is limited. The current dynamics can be characterized as a correction ahead of Friday's jobs report. Yesterday the Republican leader Mitch McConnelly offered the Democrats a temporary compromise solution to the U.S. government debt problem, which will provide funding for the government until December. This measure reduces the risk of default and allows the Fed to implement the monetary policy according to the plans. Thus, the U.S. currency is the most suitable instrument for escaping from risks.

The EUR/USD is ready to make new yearly lows. The energy crisis in Europe, caused by rising gas prices, increases the price pressure. With high inflation and slowing GDP in the eurozone, the risks of stagflation are increasing.

The British pound has moderately strengthened today, having ignored the strong report of the US Department of Labor Statistics. GBP/USD likely rose due to a short position-taking before Friday's important release.

AUD/USD and NZD/USD are showing minimal gains on Thursday, confirming the current market assessment. The New Zealand dollar recovered from losses following the regulator's key rate meeting. The Reserve Bank was one of the first to implement a hawkish monetary policy, but investors were disappointed by a tightening of only 25 basis points as they expected a hike of 50. USD/CAD declined thanks to a significant rise in Canadian business activity in September. At the same time, the pair did not lose support from the hydrocarbons market for long.

Brent and WTI were down today after falling on Wednesday. The pressure on the instrument was given by the EIA report that reflected the growth in major oil products inventories in the U.S. In addition, the head of the U.S. Department of Energy said that he was ready to use the strategic oil reserves to reduce the price pressure, which may limit the upward potential of the hydrocarbons market, but for a short time, given the energy crisis in Europe.

XAU/USD was down slightly on Tuesday. Yesterday's strong ADP report as well as today's jobless claims stats point to Friday's strong jobs report. In this situation, investors are more likely to increase dollar purchases, abandoning gold as a "safe haven asset".