Here’s what you need to know to trade today Tuesday October 8:
Markets maintain a cautious tone early Tuesday as investors await the next batch of macroeconomic data releases. The US economic docket will include the NFIB Business Optimism Index for September and the RealClearMarkets/TIPP Economic Optimism Index data for October. The US Bureau of Economic Analysis will also release goods trade balance figures for August. Later in the US session, several Federal Reserve (Fed) policymakers are scheduled to give speeches.
US Dollar PRICE Last 7 days
The table below shows the percentage change of the United States Dollar (USD) against the main currencies in the last 7 days. The US Dollar was the strongest currency against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 1.37% | 2.34% | 2.91% | 0.85% | 2.80% | 3.79% | 0.92% | |
| EUR | -1.37% | 0.95% | 1.49% | -0.51% | 1.41% | 2.37% | -0.46% | |
| GBP | -2.34% | -0.95% | 0.56% | -1.45% | 0.44% | 1.42% | -1.38% | |
| JPY | -2.91% | -1.49% | -0.56% | -1.97% | -0.08% | 0.88% | -1.90% | |
| CAD | -0.85% | 0.51% | 1.45% | 1.97% | 1.93% | 2.91% | 0.07% | |
| AUD | -2.80% | -1.41% | -0.44% | 0.08% | -1.93% | 0.96% | -1.84% | |
| NZD | -3.79% | -2.37% | -1.42% | -0.88% | -2.91% | -0.96% | -2.75% | |
| CHF | -0.92% | 0.46% | 1.38% | 1.90% | -0.07% | 1.84% | 2.75% |
The heat map shows percentage changes for major currencies. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you choose the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change shown in the box will represent USD (base)/JPY (quote).
The National Development and Reform Commission (NDRC), China’s state planner, said on Tuesday that downward pressure on China’s economy is increasing. “China’s economy faces more complex internal and external environments,” the NDRC noted. After Wall Street’s main indices closed the first day of the week in negative territory on Monday, US stock index futures are trading marginally lower early on Tuesday, reflecting the negative mood. Meanwhile, the US Dollar Index (USD) continues to move sideways near 102.50 after failing to make a directional move in either direction on Monday.
Data from Germany showed that industrial production rose 2.9% on a monthly basis in August. This reading followed the 2.4% contraction recorded in July and exceeded the market expectation of 0.8%. He EUR/USD is struggling to benefit from the positive data and is trading marginally higher on the day below 1.1000.
In the minutes of the September policy meeting, the Reserve Bank of Australia (RBA) said board members discussed options to lower or raise interest rates, adding: “The lower, hold and raise scenarios rates are all conceivable given the considerable uncertainty about the economic outlook.” While speaking at the Walkley Foundation, RBA Deputy Governor Andrew Hauser noted that they will act on policy when inflation is no longer high and persistent. After posting heavy losses on Monday, the AUD/USD continued to decline in the Asian session on Tuesday. At press time, the pair was trading at its lowest level since mid-September below 0.6730.
Japan’s Economy Minister Ryosei Akazawa said Tuesday that a drop in real wages for the first time in three months is not good news. Akazawa further stated that the Japanese government will create an environment where real wages continue to rise. He USD/JPY It showed no reaction to these comments and was seen fluctuating in a narrow channel around 148.00.
He GBP/USD fell amid risk aversion in the second half of the day on Monday and closed the day below 1.3100. The pair is struggling to rebound early on Tuesday.
He Gold posted modest losses for the fourth straight day on Monday. XAU/USD remains on the defensive and is trading below $2,640 in European morning trading on Tuesday.
Risk sentiment FAQs
In the world of financial jargon, the two terms “risk appetite (risk-on)” and “risk aversion (risk-off)” refer to the level of risk that investors are willing to bear during the investment period. reference. In a “risk-on” market, investors are optimistic about the future and are more willing to buy risky assets. In a “risk-off” market, investors begin to “play it safe” because they are worried about the future and, therefore, buy less risky assets that are more certain to provide a return, even if it is relatively modest.
Typically, during periods of “risk appetite”, stock markets rise, and most commodities – except gold – also appreciate as they benefit from positive growth prospects. The currencies of countries that are large exporters of raw materials strengthen due to increased demand, and cryptocurrencies rise. In a “risk-off” market, Bonds rise – especially major government bonds -, Gold shines and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar benefit.
The Australian Dollar (AUD), Canadian Dollar (CAD), New Zealand Dollar (NZD) and minor currencies such as the Ruble (RUB) and the South African Rand (ZAR) tend to rise in markets where there is “appetite for risk.” This is because the economies of these currencies rely heavily on commodity exports for their growth, and these tend to rise in price during periods of “risk appetite.” This is because investors anticipate higher demand for raw materials in the future due to increased economic activity.
The major currencies that tend to rise during periods of “risk aversion” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The Dollar, because it is the world’s reserve currency and because in times of crisis investors buy US public debt, which is considered safe because it is unlikely that the world’s largest economy will go into default. The Yen, due to the increase in demand for Japanese government bonds, since a large proportion is in the hands of domestic investors who are unlikely to get rid of them, even in a crisis. The Swiss franc, because strict Swiss banking legislation offers investors greater capital protection.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
