Daily analysis 07 october

• US indices finished yesterday’s session lower, while investors look ahead to the NFP report for fresh clues on the trajectory of Fed tightening. S&P 500 fell 1.02%, Dow Jones dropped 1.15% and Nasdaq lost 0.68%. Russell 2000 fell 0.60%.
• Indices from Asia-Pacific also traded lower. Nikkei fell 0.80%, S&P/ASX 200 traded 0.58% lower while Kospi lost 0.30%. Markets in China were closed for holidays.
• DAX futures point to a flat or slightly lower opening of the European cash session today
• Fed Mester said, right now the Fed needs to be focused on getting inflation down, not jobs. In her opinion US central bank will not be cutting rates at all in 2023
• Fed’s Waller believes that chances of a soft landing falls the more aggressive Fed has to be
• Japan’s PM Kishida said, recent sharp, one-way yen moves are undesirable and government cannot turn a blind eye to speculative FX moves
• RBA believes the risks to financial stability have increased globally due to policy tightening, geopolitical tension, higher US dollar, rising energy prices
• US lawmakers are pushing bills that aim to break up the OPEC cartel, charge it in front of the WTO, or even seize assets its members own in the US, according to WSJ
• Goldman Sachs raised its brent oil price forecast for 2022 to $104 per barrel from $99 and for 2023 to $110 per barrel from $108
• Binance, the largest crypto exchange suffered an ‘exploit’ but assures clients that funds are safe.
• Cryptocurrencies are trading slightly higher. Bitcoin rose 0.2%, Ethereum jumped 0.4%
• Energy commodities pulled back, with Brent trading lower near $93.15 per barrel
• Mixed moods prevail on the precious metals market. Gold fell 0.1% while silver gains over 0.8%
• JPY and CH are the best performing major currencies while AUD and NZD lag the most

OIL.WTI price managed to stay above the major support zone around $87.60, which is marked with upper limit of the local 1:1 structure, downward trendline and 61.8% Fibonacci retracement of the upward wave launched in December 2021. As long as price sits above this level, upward move may accelerate towards next resistance at $92.75.