2022-12-20 09:41

Market Update - 20 December 2022 EUR/USD oscillates in a familiar trading range around the 1.0600 mark on Tuesday. The BoJ-inspired rally in the JPY weighs on the USD and lends support to the major. Hawkish Fed, rising US bond yields and the risk-off mood limits losses for the buck. (FXStreet) USD/JPY drops more than 3.0% to refresh multi-day bottom after Bank of Japan tweaks Yield Curve Control (YCC) policy. Chatters surrounding Japan’s budget, Treasury bond buying also entertain Yen traders. BOJ Governor Kuroda shows readiness to ease policy if needed, USD/JPY stays pressured. Risk aversion fails to underpin US Dollar as Federal Reserve appears less hawkish. (FXStreet) GBP/JPY plummets to over a two-month low in reaction to the BoJ’s hawkish twist on Tuesday. A dovish outlook, however, caps gains for the JPY and assists spot prices to recover a few pips. The fundamental backdrop favours bearish traders and supports prospects for further losses. (FXStreet) USD/CAD picks up bids to reverse the week-start losses. US Dollar benefits from the BOJ-inflicted losses in bond, stock markets. Oil price weaken amid economic fears surrounding China. Canada Retail Sales, US housing data eyed for fresh impulse. (FXStreet) GBP/USD takes offers to refresh intraday low, pokes short-term key support line. Sustained trading below 100-SMA keeps sellers hopeful of visiting 200-SMA. Two-week-old horizontal area restricts immediate upside before the monthly high. (FXStreet) US Dollar Index stays depressed around six-month low, retreats from one-week high. Hawkish ECB talk, firmer German data and a light calendar at home probe DXY bulls. US Treasury bond yields remain firmer for the third consecutive day. US housing data, risk catalysts can entertain traders ahead of Friday’s US Core PCE Price Index. (FXStreet) EUR/JPY dropped more than 400 pips on Bank of Japan widening the bank of yield cap. BOJ left monetary policy unchanged, as expected. ECB hawks, firmer German data previously favored bulls. BOJ Governor Kuroda’s speech will be closely monitored for fresh impulses. (FXStreet) NZD/USD is taking out a key level and printing fresh lows within a bearish schematic. should the bulls move in now, then there will be prospects of a restest of prior structures near 0.6355 and 0.6375 above. (FXStreet) AUD/USD drops to a nearly one-month low and is pressured by a combination of factors. The dovish RBA minutes, along with the risk-off mood, weigh on the risk-sensitive Aussie. A weaker USD lends support, though the bias now seems tilted in favour of bearish traders. (FXStreet) AUD/JPY grinds higher even as RBA Minutes fail to impress traders. RBA Minutes stated that policymakers discussed all options, eyed further rate hikes. Inverse Head-and-Shoulders pattern, impending bull cross on MACD lure buyers. 200-SMA, weekly resistance line add to the upside filters. (FXStreet) USD/INR picks up bids inside fortnight-old bearish chart pattern. Immediate resistance line, bearish MACD signals test recovery moves inside rising wedge. 50-SMA, looming bull cross on MACD restrict immediate downside. Slower grind to the north more likely amid firmer RSI, sustained trading beyond the key SMAs. (FXStreet) WTI crude oil struggles to defend the bounce off 50-HMA, remains sidelined of late. Firmer RSI line backs gradual recovery on prices, suggesting further advances of the quote. Sellers need clear break of 200-HMA to retake control. (FXStreet) Gold price remains mildly bid despite the US Dollar’s latest rebound. BOJ-linked slump in equities, bonds underpin Gold’s safe-haven buying. Headlines surrounding China, global recession also probe XAU/USD bulls but light calendar, holiday mood stop seller’s entry. (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.

2022-12-19 09:49

Market Update - 19 December 2022 EUR/USD regains traction on Monday and snaps a two-day losing streak. A positive risk tone undermines the safe-haven USD and lends support. The upbeat German IFO Business Climate Index further provides a boost. The mixed fundamental backdrop warrants some caution for bullish traders. (FXStreet) USD/JPY fails to gain any meaningful traction on Monday amid a combination of diverging factors. Bets for an eventual BoJ pivot benefit the JPY and cap the upside amid a modest USD downtick. An uptick in the US bond yields could limit the USD losses and lend some support to the major. Traders might also prefer to wait on the sidelines ahead of the BoJ policy meeting on Tuesday. (FXStreet) USD/CAD struggles to defend bears during the first daily loss in three. Oil price initially cheered hopes of China stimulus, softer US Dollar before latest consolidation. Inflation is the key but holiday mood could restrict short-term moves. (FXStreet) GBP/JPY fades bounce off two-week low as it approaches the key support. 100-DMA, five-week-old ascending support line restricts short-term downside. Bearish MACD signals, clear break of 50-DMA favor sellers. (FXStreet) GBP/USD rises for the first time in three straight days on Monday. Broad US Dollar weakness underpins Cable despite Fed-BoE policy divergence. Pound Sterling bulls stay hopeful while above 21DMA, looks to 1.2200. (FXStreet) US Dollar Index snaps two-day uptrend with mild losses. Fed policymakers keep suggesting higher rates for longer, US PMIs eased in December. Firmer prints of Fed’s preferred inflation gauge could help DXY bulls. (FXStreet) NZD/USD draws support from a combination of factors and edges higher for the second straight day. A positive risk tone is seen undermining the safe-haven buck and benefitting the risk-sensitive Kiwi. The Fed’s hawkish outlook should limit the USD losses and cap any meaningful upside for the major. (FXStreet) AUD/USD struggles to defend bulls during the first positive day in three. Risk appetite remains mixed as hopes of more stimulus from China, Covid woes test sentient amid light calendar. Hopes of Australia-China diplomatic ties also underpin AUD/USD rebound. Reserve Bank of Australia Meeting Minutes, Federal Reserve’s preferred inflation data will be crucial for Australian Dollar traders. (FXStreet) USD/INR pares intraday gains around six-week high, stays depressed of late. US Dollar remains depressed on softer US PMIs, ignore hawkish Fedspeak. Market players expect continuous grind between 82.70 and 83.00. RBI Minutes, US Core PCE Price Index in focus. (FXStreet) USD/CHF remains pressured near intraday low, prints the first daily loss in three. Multiple supports stand tall to challenge sellers even as looming bear cross on MACD signal further downside. 200-HMA, two-week-old descending trend line guard immediate upside. (FXStreet) WTI takes the bids to renew intraday high, snaps two-day downtrend. Bearish MACD signals, six-week-old descending trend line challenge buyers. Fresh downside remains doubtful beyond $73.40, yearly low could lure bears afterward. (FXStreet) Gold price lacks any firm directional bias on Monday and remains confined in a narrow range. A modest USD downtick lends some support, though a combination of factors caps the upside. The prospects for further tightening by major central banks act as a headwind for the metal. (FXStreet) Silver price fades bounce off 10-DMA, grinds lower of late. 61.8% Fibonacci retracement level, impending bear cross on MACD favor sellers. Six-week-old ascending trend line acts as the key support. Silver price (XAG/USD) fade the previous day’s recovery to around $23.25 during early Monday. (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.

2022-12-15 09:16

Market Update - 15 December 2022 EUR/GBP struggles to gain any meaningful traction and remains confined in a range. Investors prefer to wait on the sidelines ahead of the BoE and ECB policy decisions. The lack of any buying suggests that the recent downtrend is still far from being over. (FXStreet) USD/CAD regains some positive traction on Thursday, albeit lacks follow-through buying. Retreating oil prices undermines the Loonie and lends support amid a modest USD uptick. Depressed US bond yields act as a headwind for the USD and cap the upside for the pair. Traders now look to US macro data for some impetus amid a flurry of central bank events. (FXStreet) GBP/USD rebounds from intraday low but stays mildly offered. Pullback from three-day-old horizontal resistance teases sellers amid overbought RSI, impending bear cross on MACD. Key SMAs add to the downside filters, fortnight-old resistance line also challenges buyers. (FXStreet) US Dollar Index rebounds from six-month low, snaps two-day downtrend. Fed announced 50 bps rate increase, showed readiness to keep it higher for long. A reassessment of Fed’s rate bias seems favoring US Treasury yields and the greenback. Multiple central bank announcements, US Retail Sales eyed for fresh impulse. US Dollar Index (DXY) remains mildly bid around 104.00 as it prints the first daily gains in three during the early Thursday morning in Europe. (FXStreet) EUR/USD has slipped near 1.0650 as the risk-off mood has gained significant traction. Higher interest rate peak guidance and no absolute commentary on recession by the Federal Reserve have supported US Dollar. Accelerating Eurozone inflation expectations are expected to force European Central Bank to hike interest rates by 50 bps. EUR/USD is expected to remain on tenterhooks as upside seems capped amid sour market mood. (FXStreet) USD/JPY picks up bids to snap two-day downtrend. Multiple levels marked since December 01 restrict immediate upside. Receding bearish bias of MACD signals further recovery. 100-SMA acts as the last defense USD/JPY bears. (FXStreet) AUD/USD takes offers to refresh intraday low, reverses from 6.5-month-old resistance line. Sluggish oscillators add strength to the pullback moves targeting November’s peak. Three-week-old ascending trend line, 100-DMA challenge bears before giving them control. (FXStreet) NZD/USD seesaws between tepid gains/minor losses through the early European session. A hawkish assessment of the Fed’s decision revives the USD demand and caps the upside. The disappointing Chinese macro data further contribute to the modest intraday pullback. Depressed US bond yields keep a lid on the USD recovery and should help limit the slide. (FXStreet) USD/INR grinds higher around intraday top, extends India Inflation-led rebound. US Dollar benefits from market’s cautious mood ahead of key central bank announcements. Fed announced 50 bps rate hike, as expected, but showed readiness to keep higher rates for longer. Key central bank announcements, US Retail Sales eyed for fresh impulse. (FXStreet) USD/IDR picks up bids on mixed prints of Indonesia trade data for November. Indonesia Trade Balance rose more-than-expected to $5.16 billion but Imports and Exports dropped. Indonesian Parliament’s move for Bank Indonesia also teases pair buyers. US Dollar reverses post-Fed losses amid cautious mood ahead of the key central bank announcements. (FXStreet) Gold price bounces off intraday low as traders await key central bank announcements. US Dollar rebound teases XAU/USD bears but cautious mood restricts movements. Lack of surprises from Fed initially weighed on US Dollar before the recession woes triggered USD rebound. (FXStreet) A formation of the Three While Soldiers candlestick pattern after a fresh 11-month low has triggered a bullish reversal. The oil prices are currently facing barricades around the 20-EMA at $77.50. A range shift by the RSI (14) from the bearish range to 40.00-60.00 indicates that the bearish bias has faded. West Texas Intermediate (WTI), futures on NYMEX, have turned sideways around $76.70 after failing to sustain above the critical resistance of $77.50 on Wednesday. (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.

2022-12-14 09:51

Market Update - 14 December 2022 EUR/USD lacks any firm intraday direction and remains confined in a range on Wednesday. The underlying bearish sentiment surrounding the USD seems to act as a tailwind for the pair. Investors look to the FOMC decision for some impetus ahead of the ECB meeting on Thursday. (FXStreet) GBP/JPY remains under some selling pressure for the second successive day on Wednesday. Softer UK consumer inflation figures undermine the British Pound and act as a headwind. A positive risk tone dents the JPY’s relative safe-haven status and lends support to the cross. (FXStreet) GBP/USD seesaws around six-month high after UK inflation data. UK CPI retreats from 41-year high to 10.7% YoY in November, firmer RPI defends bulls. The cautious mood ahead of FOMC Meeting restricts GBP/USD reaction to data. Fed is up for 50 bps rate hike, which could favor bulls more after recently firmer UK inflation data. (FXStreet) USD/CAD grinds higher after bouncing off weekly low. Bullish MACD signals, sustained trading beyond convergence of 21-day EMA, one-month-old support line favor buyers. Seven-week-old descending trend line restricts recovery moves ahead of monthly high. (FXStreet) US Dollar Index bounces off six-month low, stays inside falling wedge bullish chart pattern. Oversold RSI, multiple hurdles to the south also keep buyers hopeful. 61.8% Fibonacci retracement level guards immediate upside, 200-DMA acts as an extra filter to the north. US Dollar Index (DXY) battles with the bears at the lowest levels since June, defending 104.00 during early Wednesday in Europe. (FXStreet) USD/JPY prints mild losses as markets turn dicey ahead of the key events. 200-DMA, four-month-old support line defend buyers amid bullish MACD signals. Sellers remain hopeful unless witnessing a clear break of 138.00 hurdle. (FXStreet) EUR/JPY licks its wounds after positing the biggest daily loss in two weeks. Japan’s Tankan data shows Q4 manufacturers' mood worsens, inflation expectations jump to record high. Treasury bond yields remain pressured after snapping three-day uptrend. Risk-negative catalysts, anxiety ahead of market-moving events also challenge EUR/JPY pair buyers. (FXStreet) AUD/USD reverses modest intraday losses, though lacks follow-through buying. The risk-on mood lends support to the Aussie; a modest USD uptick caps gains. Traders now look to the key FOMC policy decision for a fresh directional impetus. (FXStreet) USD/CHF is oscillating below 0.9300 as investors await Federal Reserve’s policy release for fresh cues. Investors seek policy guidance for CY2023 from the Federal Reserve as an interest rate hike by 50 bps is highly expected. An interest rate hike by 50 bps is expected from the Swiss National Bank to keep inflation near 2%. USD/CHF is expected to resume its downside journey as technical indicators narrate more weakness ahead. (FXStreet) NZD/USD is looking for a cushion around 0.6430 as investors see a less-hawkish Fed monetary policy. The decline in US inflation is backed by a significant drop in gasoline prices, used cars, and airline fares. Going forward, a mixed response is expected from New Zealand GDP data. (FXStreet) USD/INR has jumped to near 82.70 as firmer oil prices have offset the impact of the subdued US Dollar. S&P500 futures have extended their gains which indicates that the traction is in favor of risk-sensitive assets. Apart from the decline in the interest rate pace, investors will also focus on Fed policy guidance for CY2023. (FXStreet) Silver oscillates in a narrow trading band through the first half of the European session. The formation of an ascending channel points to a well-established short-term up trend. A convincing break below the 100-hour SMA is needed to negate the constructive setup. (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.

2022-12-13 09:48

Market Update - 13 December 2022 USD/CAD meets with some supply on Tuesday and is pressured by a combination of factors. A further recovery in oil prices underpins the Loonie and exerts pressure amid a softer USD. The downside seems limited as traders look to the US CPI for a fresh impetus ahead of FOMC. GBP/JPY touches a five-month high on Tuesday, albeit lacks follow-through buying. A generally positive risk tone undermines the safe-haven JPY and remains supportive. The mixed UK jobs data fails to impress bulls or provide a fresh impetus to the cross. Traders also seem reluctant ahead of the UK CPI report and the BoE meeting this week. GBP/USD picks up bids to reverse early-day losses, prints five-day uptrend. UK Claimant Count Change increased in November, Unemployment Rate rose during three months to October. Market’s cautious optimism, mixed signals surrounding US inflation weigh on the US Treasury yields, US Dollar. US CPI, speech from BOE Governor Bailey will be crucial for clear directions. EUR/USD gains some positive traction on Tuesday amid a modest USD downtick. A generally positive risk tone undermines the safe-haven buck and offers support. The upside seems limited ahead of the US CPI and the crucial central bank meeting. The US Dollar Index has dropped to near day’s low around 104.90. Volatility in the US Dollar Index has contracted ahead of the US Inflation release. The 200-EMA at 105.20 is acting as a major barricade for the USD Index. The US Dollar Index (DXY) is displaying wild moves as investors are dwindling ahead of the release of the United States Consumer Price Index (CPI) data. USD/JPY remains sidelined after rising to an eight-day high. Treasury bond yields snap four-day uptrend, US Dollar stays depressed. Mixed concerns surrounding US CPI, challenges for BOJ’s pivot restrict immediate USD/JPY moves. EUR/GBP is auctioning below 0.8600 as investors await UK Employment data. Increment in households’ earnings data could be a double-edged sword for the UK economy. The ECB is expected to hike its interest rates by 50 bps to 2.50%. NZD/USD regains some positive traction on Tuesday amid a modest USD downtick. A positive risk tone and softer US bond yields keep the USD bulls on the defensive. The upside seems capped ahead of the US CPI on Tuesday and FOMC on Wednesday. AUD/USD recovers from intraday low but stays indecisive on a daily basis. Bearish RSI divergence, rising wedge keeps sellers hopeful even as 100-DMA adds to the downside filters. Recovery remains elusive below 0.6880, weekly high guards immediate upside. WTI picks up bids to extend recovery from yearly low, seesaws around intraday high. One-week-old descending trend line, nearly overbought RSI challenge oil buyers. Convergence of 50-HMA, previous resistance line restrict immediate downside. 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.

2022-12-12 09:41

Market Update - 12 December 2022 EUR/USD is catching a fresh bid, as the US Dollar drops with Treasury yields. Risk sentiment remains tepid amid China’s covid woes, ahead of critical events. EUR/USD targets a rising channel upper boundary at 1.0635 on a sustained move above 1.0600. GBP/USD bounces off intraday bottom on mostly upbeat British data.UK data came in mostly firmer-than-expected and challenges the previous fears surrounding the British economy. US Dollar cheers risk-off mood ahead of the key US inflation, Fed meeting. Light calendar elsewhere restricts the pair’s immediate moves even as bears struggle to retake control. USD/JPY is aiming to shift its auction profile above 137.00 as the risk-off mood is strengthening further. Mixed views on the Federal Reserve policy outlook have escalated anxiety among the market participants. The Bank of Japan is aggressively working to achieve a 2% inflation rate. USD/JPY is expected to accelerate gains amid technical tailwinds. USD/CAD retreats from intraday high, struggles to defend buyers. WTI bounces off yearly low, snaps six-day downtrend, amid fears of supply crunch. Sour sentiment, anxiety ahead of the key data/events underpin US Dollar. Speech from BOC Governor Maclem can entertain traders ahead of bumper catalysts. US Dollar Index stays firmer after snapping two-week downtrend. Upbeat US data keeps Fed hawks on the table even as 50 bps rate hike is already given. Slew of economic data could trigger more volatility and favor DXY bulls ahead of the key data/events. Monday’s light calendar may portray a softer start to the key week. AUD/USD remains depressed around intraday low during the first loss-making day in four. Bearish MACD signals, failure to cross weekly resistance line keep sellers hopeful. Buyers need validation from monthly high to retake control. USD/CHF buyers struggle inside a bullish chart formation. Upbeat MACD signals suggest further advances, 200-HMA acts as an additional upside filter. Bears have a bumpy road to travel unless breaking 0.9300 support. The Kiwi Dollar has rebounded despite pre-Fed policy anxiety.A bull cross, represented by the 20-and 200-period EMAs at 0.6214, indicates more upside ahead. The RSI (14) is oscillating in the bullish range, which indicates that the upside momentum is active. The NZD/USD pair is an inch far from the round-level resistance of 0.6400, at the time of writing, after resurfacing from around 0.6380 in the early Asian session. USD/INR prints three-day losing streak as it takes the bids to refresh intraday high. Precursors for US inflation suggest hawkish rate hike announcements from the Federal Reserve. India inflation, Industrial/Manufacturing Production keeps traders on the edge, recovery in oil prices also fuels USD/INR prices. WTI printed fresh bear cycle lows on Friday. Focus is on TC Energy and the price of Russian crude trading below the $60/bbl cap. West Texas Intermediate is higher by some 0.57% on the day having travelled between a low of $71.47 and a high of $72.30. However, a fresh 2022 low was put into place on Friday due to supply concerns following a major spill from TC Energy's Keystone Pipeline in Nebraska. Gold price stays pressured around intraday low as it snaps four-day uptrend. Cautious mood ahead of the key data/events favor US Dollar buyers amid an easy start to the key week. XAU/USD bears need validation from the US CPI, Fed hawks. Silver price renews intraday low during the first loss-making day in four. Rising wedge, nearly overbought RSI adds strength to bearish bias. Convergence of previous resistance line, 21-DMA appears a tough nut to crack for XAG/USD bears. 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.