- The market sentiment is in risk-on mode, European equities finished in the green.
- Higher US T-bond yields, put a lid on the single currency rise, against the greenback.
- US Initial Jobless Claims dropped more than expected, adding to the positive US labor market outlook.
After two consecutive days of printing losses, reaching a new yearly low at 1.1528, the EUR/USD is staging a comeback, is trading at 1.1564, modestly up 0.06%, during the New York session, at the time of writing.
The market mood is in risk-on mode, portrayed by European stock indices finishing the day with gains between 1.17% and 2.14%. meanwhile, major US stock indices rise more than 1%, during the day. The US debt-limit increase solution, although short-term relieved market nervousness. Further, Vladimir Putin, the President of Russia, offered an increase of the natural gas supplies for Europe in his attempt to bring energy prices lower.
The US Dollar Index, which tracks the greenback’s performance against a basket of six peers, is down 0.09%, sitting at 94.14. Further, the US 10-year T-bond benchmark note coupon is advancing 4 basis points, sitting at 1.565%, putting the breaks on the buck’s fall against major currencies.
US Jobless Claims better than estimated, ahead of the Nonfarm Payrolls
The US economic docket revealed the US Initial Jobless Claims report for the week ending in October first. The numbers showed an increase to 326K lower than the 348K, foreseen by analysts.
The abovementioned adds to the positive ADP Employment Change report released on Wednesday, ahead of the US Nonfarm Payrolls, report.
On Friday, the US economic docket will feature the Nonfarm Payrolls report. Economists expect the creation of 488K new jobs in the economy. If the figures come in line or better than expected, investors could expect a bond tapering announcement by the FOMC’s November meeting.
KEY ADDITIONAL LEVELS TO WATCH
