2023-11-08 09:12

Market Update - 08 November 2023 The index pushes harder and approaches 106.00. US yields trade in a mixed tone so far on Wednesday. Chair Powell speaks later in the NA session. The greenback extends its weekly bounce and approaches the key 106.00 yardstick when gauged by the USD Index (DXY) on Wednesday. (FXStreet) EUR/USD could reach to seven-day EMA as the Greenback continues the winning streak. Technical indicators suggest the bullish momentum in the market sentiment. A successful breach above the 1.0700 psychological level could support the pair to reach 38.2% Fibonacci retracement. (FXStreet) GBP/USD struggles to gain any meaningful traction and remains confined in a range. A bleak UK economic outlook and bets for a BoE rate cut in 2024 weigh on the GBP. A subdued USD demand acts as a tailwind ahead of BoE’s Bailey and Fed’s Powell. (FXStreet) USD/CAD trades with a positive bias for the third successive day on Wednesday. Bearish Crude Oil prices continue to undermine the Loonie and act as a tailwind. Subdued USD price action caps the upside ahead of Fed Chair Powell’s speech. (FXStreet) USD/CHF consolidates post-intraday gains on improved US bond yields. Improved market sentiment weighs on the Swiss Franc (CHF). Minneapolis Fed President Neel Kashkari's comments propel Greenback's upward momentum. (FXStreet) USD/JPY gains traction for the third straight day, albeit lacks follow-through buying. Traders seem reluctant and look to Fed Chair Powell’s speech for a fresh impetus. The technical setup supports prospects for a further appreciating move for the pair. (FXStreet) AUD/USD moves on a downward trajectory as the RBA delivers a dovish rate statement. RBA is concerned about the economy slowing down amid persistent inflation risks. IMF upgraded China’s GDP to grow by 5.4% in 2023 and 4.6% in 2024. (FXStreet) GBP/JPY trades with a mild negative bias for the second straight day, albeit lacks follow-through. The BoE’s bleak outlook for the UK economy continues to weigh on the GBP and exert pressure. The downside remains cushioned as traders now look to BoE Governor Andrew Bailey’s speech. (FXStreet) NZD/USD draws some support from subdued USD demand, through lack follow-through. A positive risk tone, along with a further decline in the US bond yields, undermines the USD. The uncertainty over the Fed’s rate hike path holds back traders from placing directional bets. Investors also seem reluctant ahead of Fed Chair Jerome Powell’s speech later this Wednesday. (FXStreet) Prices of WTI sold-off markedly on Tuesday, breaching the $80.00 mark per barrel and the critical 200-day SMA. The pronounced pullback was in tandem with declining open interest and warns against a sustained decline in the very near term. So far, the $77.00 region emerges as a decent near-term contention area for the time being. (FXStreet) Prices of natural gas extended the bearish correction and came closer to the key $3.00 mark per MMBtu on Tuesday. The daily pullback was accompanied by rising open interest and volume and is indicative that further losses remain on the cards in the very near term. That said, there is room for further weakness to the $3.00 region, an area that remains underpinned by the transitory 55-day SMA near $2.95. (FXStreet) Gold price edges lower for the third successive day, albeit manages to hold above a two-week low. The USD sticks to its strong recovery gains and turns out to be a key factor weighing on the metal. The downside seems cushioned in the wake of the uncertainty over the Fed’s future rate-hike path. Traders now await Fed Chair Jerome Powell’s scheduled speech before placing fresh directional bets. (FXStreet) Silver drifts lower for the third straight day and drops to over a three-week low on Wednesday. The technical setup favours bearish traders and supports prospects for further near-term losses. Any attempted recovery move might now confront resistance and remain capped near $22.80. (FXStreet) Bitcoin Remains Rangebound as Open Interest Suggests Volatility May be on its Way. Whales Continue to Accumulate Bitcoin at an Impressive Rate as the $30k Mark is Seen as Key. Technicals are Starting to Point Toward a Retracement but a Weaker US Dollar Could Help Underpin the World's Largest Cryptocurrency. (DailyFX) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2023-11-07 09:19

Market Update - 07 November 2023 USD/CAD gains traction for the second successive day and is supported by a combination of factors. Bearish Crude Oil prices undermine the Loonie and act as a tailwind amid the ongoing USD recovery. Bets that the Fed is done raising rates might keep a lid on any further gains for the USD and the pair. (FXStreet) USD/JPY lacks any firm intraday direction and oscillates in a narrow band on Tuesday. The USD moves away from a near eight-week low and acts as a tailwind for the major. The Fed-BoJ policy divergence remains supportive ahead of speeches by Fed officials. (FXStreet) The index advances further and retakes 105.50. US yields look to extend the weekly recovery. Balance of Trade, Fedspeak take centre stage on Tuesday. The USD Index (DXY), which tracks the greenback vs. a basket of its main competitors, manages to regain extra upside traction and reclaims the 105.50 region on turnaround Tuesday. (FXStreet) EUR/USD remains confined in a narrow trading band for the second straight day. The USD recovers further from a multi-week low and caps the upside for the pair. The lack of follow-through warrants caution before placing aggressive bearish bets. (FXStreet) USD/CHF extends gains for the second successive day on improved Greenback. US Dollar receives upward support as US bond yields improve. Market participants price in multiple rate cuts by the end of the year 2024. (FXStreet) GBP/USD moves further away from a multi-week top and is pressured by modest USD strength. The BoE’s bleak economic outlook undermines the GBP and contributes to the mildly offered tone. Investors now look to speeches by influential FOMC members before placing fresh directional bets. (FXStreet) NZD/USD drifts lower for the second straight day and is pressured by a combination of factors. The uncertainty over the Fed’s rate-hike path prompts some follow-through USD short covering. China’s economic woes take its toll on the risk sentiment and weigh on the risk-sensitive Kiwi. (FXStreet) WTI prices rose marginally and closed just above the $80.00 mark per barrel on Monday. The move, however, was on the back of shrinking open interest and volume, leaving the commodity vulnerable to further weakness in the very near term. That said, the next contention area emerges at the 200-day SMA, today at $78.15. (FXStreet) Prices of natural gas extended the corrective decline on Monday against the backdrop of increasing open interest and volume, allowing for the continuation of the ongoing decline in the very near term. That said, the next support is now seen at the mid-October lows around the $2.90 region per MMBtu. (FXStreet) Gold price remains under some selling pressure for the second successive day on Tuesday. A modest USD strength is seen as a key factor that drags the metal to a nearly two-week low. Bets that the Fed is done raising rates might help limit losses amid the economic uncertainty. (FXStreet) Silver remains under some selling pressure for the second successive day on Tuesday. The formation of a rectangle points to indecision over the next leg of a directional move. The technical setup favours bearish traders and supports prospects for additional losses. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2023-11-06 09:52

Market Update - 06 November 2023 EUR/USD enters a bullish consolidation phase near a multi-week high touched on Friday. A modest USD uptick turns out to be a key factor that is acting as a headwind for the pair. Bets that the Fed will maintain the status quo in December should cap gains for the USD. (FXStreet) USD/JPY regains some positive traction on Monday and snaps a three-day losing streak. A modest bounce in the US bond yields helps revive the USD demand and lends support. The lack of strong follow-through buying warrants caution for aggressive bullish traders. (FXStreet) GBP/USD oscillates in a narrow trading band through the Asian session on Monday. Rebounding US bond yields help the USD to stall the post-NFP slump and cap gains. Bets that the Fed is done hiking rates keeps a lid on the USD and should limit losses. (FXStreet) AUD/USD extends its gains on subdued US Dollar after weaker NFP data. Aussie Dollar receives upward support as the RBA is expected to increase interest rates by 25 basis points. Greenback faces challenges on Fed’s dovish tone regarding monetary policy tightening in December. (FXStreet) USD/CAD loses ground on the likelihood of no interest rate hike by the US Fed in December. US Dollar lost strength due to weaker US economic data released in the previous week. BoC is expected to keep interest rates higher for a prolonged period. (FXStreet) The index extends the decline and challenges 105.00. Investors continue to digest Friday’s Nonfarm Payrolls. FOMC L. Cook speaks later in the NA session. The greenback, in terms of the USD Index (DXY), hovers around the area of multi-week lows near 105.00 at the beginning of the week. (FXStreet) USD/CHF extends its losses on the likelihood of no further interest rate hike by the US Fed. Fed is expected to conclude its policy tightening as US economic data ease. CHF could lose ground as Swiss CPI persists below the 2% target. (FXStreet) USD/INR snaps the three-day losing streak. 21-day SMA at 83.22 acts as the immediate barrier. MACD indicator suggests a bearish trend in the market sentiment. USD/INR trades higher around 83.20 lined up with immediate resistance near the 21-day Simple Moving Average (SMA) at 83.22. The USD/INR pair could gain more profits in the short term as the 50-day SMA lies slightly above the latter at 83.24. (FXStreet) WTI seesaws between tepid gains/minor losses just above a two-month low touched on Friday. Easing fears of supply disruptions from the Middle East and a modest USD strength cap the upside. The risk of a further escalation in the Israel-Hamas conflict and tight global supply lend some support. (FXStreet) Gold price comes under some selling pressure on Monday and extends Friday’s pullback from the post-NFP swing high. The upbeat market mood, along with a modest recovery in the US bond yields, drive flows away from the yellow metal. The USD languishes near a multi-week low amid bets that the Fed is done raising rates and should lend some support. Geopolitical tensions might further contribute towards limiting any meaningful downfall for the safe-haven XAU/USD. (FXStreet) Silver attracts some dip-buying ahead of the $23.00 round figure, albeit lacks follow-through. The technical setup favours bullish traders and supports prospects for a further positive move. A sustained strength beyond the $23.60-70 supply zone is needed to reaffirm the bullish bias. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2023-11-03 09:31

Market Update - 03 November 2023 GBP/USD pair attracts some buyers above 1.2200 on Friday. The pair holds above the 50- and 100-hour EMAs the the bullish RSI condition. The first resistance level is located at 1.2217; 1.2170 acts as an initial support level. (FXStreet) EUR/USD oscillates in a narrow trading band on Friday as investors keenly await the US NFP report. The formation of a bearish flag pattern warrants caution before positioning for any further upside. Weakness below the 1.0600 mark could attract some dip-buying near the ascending channel support. (FXStreet) USD/JPY remains confined in a narrow range through the Asian session on Friday. Traders opt to wait on the sidelines ahead of the crucial US monthly jobs report. The divergent Fed-BoJ policy outlook continues to act as a tailwind for the major. (FXStreet) USD/CAD stages a modest recovery from over a one-week low touched the previous day. Some repositioning trade ahead of the US/Canadian jobs data lends support to the major. The fundamental backdrop warrants caution before confirming that the pair has topped out. (FXStreet) GBP/USD struggles to capitalize on the previous day’s positive move to over a one-week high. Traders opt to move to the sidelines and look to the US monthly jobs report for a fresh impetus. The BoE’s bleak economic outlook favours bears and supports prospects for additional losses. (FXStreet) USD/CHF finds support at 0.9010, with buyers lifting pair to 0.9057 in late North American session. 'Golden cross' formation of 50-day moving average crossing above 200-day moving average opens door for bullish resumption. Sellers must push prices below 0.9000 mark and reclaim latest cycle low at 0.8887 to maintain control. (FXStreet) USD/MXN remains under selling pressure on the weaker of the USD. The pair holds below the 50- and 100-day EMAs on the four-hour amid the oversold RSI condition. The immediate resistance level is seen at 17.75; 17.46 acts as an initial support level. (FXStreet) NZD/USD scales higher for the third successive day amid the prevalent USD selling bias. Bets that the Fed will not hike rates again and a positive risk tone undermine the USD. Spot prices remain on track to snap a three-week losing streak ahead of the NFP report. (FXStreet) AUD/USD edges higher to 0.6435 on the softer USD, risk appetite. Reserve Bank of Australia (RBA) is likely to raise the rate by 25 basis points (bps) next week. Market participants will closely focus on US employment data, including Nonfarm Payrolls. (FXStreet) AUD/JPY resumes uptrend, trading near Thursday's highs, with a 2.29% rally since Monday. Buyers aim to challenge the YTD high 97.67, with first resistance levels at 97.00 and June 20 high at 97.41. If sellers push prices toward Tenkan-Sen at 95.58, AUD/JPY could turn neutral, exposing the bottom of Ichimoku Cloud at 94.33. (FXStreet) The AUD/NZD is falling back after peaking on Wednesday. Antipodean cross pair is cycling familiar territory as bulls refuse to go down. AUD losing upside momentum could signal another turn towards the downside. (FXStreet) WTI prices gain momentum amid the risk-on mood, the softer US Dollar. The anticipation that FOMC has reached a peak in its interest rate hiking cycle and the rising geopolitical tensions boost WTI prices. Oil traders await the US employment data, including Nonfarm Payrolls (NFP), due later on Friday. (FXStreet) Gold price trades with a positive bias for the second straight day, albeit lacks follow-through. A positive risk tone caps gains for the metal amid the uncertainty over the Fed’s rate-hike path. Traders now look to the crucial US Nonfarm Payrolls (NFP) data for some meaningful impetus. (FXStreet) Silver remains under some selling for the second straight day and drops closer to the weekly trough. The technical setup favours bearish traders and supports prospects for additional near-term losses. A sustained strength beyond the $23.60-$23.70 supply zone is needed to negate the negative bias. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2023-11-02 09:33

Market Update - 02 November 2023 GBP/JPY drifts lower for the second straight day, though the downside remains limited. Intervention fears boost the JPY and turn out to be a key factor weighing on the cross. The BoJ’s dovish stance and a positive risk tone cap any meaningful gains for the JPY. Traders also seem reluctant to place aggressive bets ahead of the crucial BoE decision. (FXStreet) EUR/USD attracts some buyers near 1.0600 post-Fed meeting. The Federal Open Market Committee (FOMC) held the rate steady at the 5.25%–5.50% range, as widely expected. ECB’s Joachim Nagel said the ECB must keep the rate higher for longer. Market players will monitor the Eurozone HCOB Manufacturing PMI and the US weekly Initial Jobless Claims. (FXStreet) GBP/USD gains momentum below the 1.2200 barrier post-Fed meeting. The pair holds above the 50- and 100-hour EMAs, RSI indicator stands in the bullish zone. The key resistance level to watch is the 1.2200–1.2210 region; 1.2147 acts as an initial support level. (FXStreet) A combination of factors drags USD/CAD away from the YTD peak touched on Wednesday. A modest uptick in Oil prices underpins the Loonie and exerts pressure amid a weaker USD. A positive risk tone is seen as another factor denting demand for the safe-haven Greenback. (FXStreet) USD/JPY remains under some selling pressure for the second successive day amid a weaker USD. Expectations that the Fed is don raising rates and sliding US bond yields weigh on the Greenback. The Fed-BoJ policy divergence should limit gains for the JPY and limit the downside for the major. (FXStreet) AUD/JPY climbs to a five-week high following the Federal Reserve's decision to hold rates steady. Wall Street rally and upbeat market sentiment benefit risk-perceived currencies like the Aussie Dollar. From a technical perspective, AUD/JPY is neutral to upward biased, with potential resistance at 96.92 and 97.00 marks. (FXStreet) The EUR/GBP is trading back up from the day's bottom, but struggling to maintain momentum. Euro weakening after data softened further on Tuesday, EU GDP missed market calls. The BoE is slated for Thursday, expected to hold despite sticky inflation. (FXStreet) The NZD/USD is seeing a recovery fueled mostly by broad-market US Dollar selling. NZ economic data has broadly missed the mark, hampering upside potential. Markets set to keep an eye out for Friday's US NFP. (FXStreet) NZD/JPY cleared most of its daily losses and closed at 88.220 after bottoming at a low of 87.556. The cross finished the session above the 20 and 100-day SMA. Indicators on the daily chart are now favouring the bulls. (FXStreet) AUD/USD gains traction for the second straight day and climbs to over a three-week top. The post-FOMC USD selling bias turns out to be a key factor behind the ongoing move up. A move beyond the 50-day SMA and the 23.6% Fibo. supports prospects for further gains. (FXStreet) The AUD/NZD is trading into the top side heading into Thursday. The Kiwi has been lagging as economic data continues to miss the mark. The Aussie is stepping even deeper into overbought territory. (FXStreet) WTI prices hold positive ground above the $81.00 mark post Federal Open Market Committee (FOMC) meeting. The FOMC maintained the interest rate unchanged at the 5.25–5.50% range on Wednesday. The rising Middle East tensions could lead to supply disruptions. (FXStreet) Gold price gains positive traction on Thursday amid sliding US bond yields and a weaker USD. Geopolitical tensions and China’s economic woes also contribute to the intraday positive move. The prevalent risk-on environment caps any further upside for the safe-haven precious metal. (FXStreet) Silver gains some positive traction, albeit struggles to capitalize on the move beyond $23.00. The mixed technical setup warrants caution for bulls and before positioning for further gains. A sustained break below the $22.50-45 area will be seen as a fresh trigger for bearish traders. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.

2023-11-01 09:19

Market Update - 01 November 2023 EUR/GBP extends losses after downbeat Eurozone economic figures. Eurozone HICP (YoY) reduced to 2.9% and GDP (YoY) eased to 0.1%. Pound Sterling could face challenges as BoE is expected to keep interest rates at 5.25%. (FXStreet) GBP/JPY struggles to capitalize on the previous day’s post-BoJ rally to a seven-week high. Intervention fears prompt some profit-taking ahead of the BoE policy meeting on Thursday. The BoJ’s dovish stance might continue to undermine the JPY and help limit the downside. (FXStreet) EUR/JPY gains momentum around the 160.00 psychological figure on Wednesday. The verbal intervention from Japan's top currency diplomat Masato Kanda might cap the Japanese Yen’s downside. Eurozone HICP eased to 2.9% YoY in October vs 4.3% prior, the quarterly GDP for Q3 came in at -0.1%. (FXStreet) USD/CAD continues to gain ground ahead of the FOMC policy decision. Crude oil prices dropped to two-month lows; weakening the Loonie Dollar. Canada’s GDP experienced no growth, remaining flat at 0.0% in August. (FXStreet) USD/CHF oscillates around the 0.9076-0.9105 region in a narrow trading band ahead of the key event. Federal Open Market Committee (FOMC) will announce its interest rate decision on Wednesday, with no surprise in rate expected. Swiss Real Retail Sales came in at -0.6% YoY in September vs. -2.2%, better than expected. FOMC policy meeting and Swiss National Bank (SNB) Chairman Jordan's speech will be in the spotlight on Wednesday. (FXStreet) EUR/USD could revisit the previous week's low at 1.0521 due to facing pressure. Any dovish remarks post-Fed decision could uplift the pair toward a 23.6% Fibonacci retracement level at 1.0648. RSI indicates a bias towards a weaker market sentiment. (FXStreet) USD/JPY strengthened as the BoJ scrapped the 1% ceiling for the 10-year government bond yield. BoJ Governor Ueda expressed fear about inflation not reaching long-term targets. Japan's Chief Cabinet Secretary Matsuno engaged in some verbal intervention to bolster the yen. (FXStreet) GBP/USD extends its downside around 1.2140 ahead of key events. Federal Open Market Committee (FOMC) is expected to hold the rate unchanged at its November meeting while holding a hawkish stance. Bank of England (BoE) is anticipated to keep rates steady amid the fear of potential recession in the UK. The FOMC and BoE meetings will be in the spotlight ahead of the US Nonfarm Payrolls data. (FXStreet) NZD/USD extends losses on weaker Kiwi and Chinese economic data. Kiwi Employment Change declined by 0.2% in the third quarter. China's Manufacturing PMI dropped to 49.5 in October. Traders seek Fed's remarks on interest rates trajectory. (FXStreet) NZD/JPY rose from daily lows of 87.03 to test 88.00, though the rally was halted by the Kijun-Sen at 88.49. On the upside, resistance levels are at 88.00, the Kijun-Sen at 88.49, and the October 11 high at 89.93. Key support levels include the top of the Kumo at 87.82, the bottom of the Kumo at 87.00, and the September 5 swing low at 86.30. (FXStreet) USD/MXN gains ground despite solid Mexico’s GDP figures. Mexico's economy expanded at 0.9% in the third quarter compared to the 0.8% expected. Positive market sentiment contributes support for the US Dollar ahead of the Fed decision. (FXStreet) WTI remains depressed for the third straight day and languishes near a two-month low. Receding fears about supply disruptions from the Middle East war weigh on Oil prices. Worries that a slowdown in China will dent fuel demand contribute to the offered tone. (FXStreet) Gold price drifts lower for the third successive day and refreshes weekly low on Wednesday. Receding safe-haven demand and hawkish Fed expectations continue to weigh on the metal. China’s economic woes lend some support to the safe-haven metal ahead of the Fed decision. (FXStreet) Silver continues losing ground for the second straight day and drops to a fresh weekly low. The technical setup favours bearish traders and supports prospects for a further downfall. A sustained move beyond the $23.60-70 multiple tops barrier will negate the bearish bias. (FXStreet) Source: FXStreet, DailyFX Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.