2022-12-09 09:39

Market Update - 09 December 2022 EUR/USD moves back closer to a multi-month top, though lacks follow-through. A modest USD recovery is seen as a key factor acting as a headwind for the pair. Bets for less aggressive Fed rate hikes, a positive risk tone should cap the buck Traders also seem reluctant ahead of crucial central bank meetings next week. USD/CAD bounces off 50 DMA support and recovers a part of the overnight losses. Bearish crude oil prices undermine the Loonie and offer some support to the major. A combination of factors weighs on the USD and might cap the upside for the pair. USD/JPY drifts lower on Friday amid heavy follow-through selling around the USD. Bets for less aggressive Fed rate hikes, depressed US bond yields weigh on the buck. Traders, however, seem reluctant ahead of next week’s key US data/FOMC meeting. GBP/USD has shifted its business profile comfortably above 1.2250 as the risk-on mood has strengthened. Federal Reserve is set to calm down the pace of the interest rate hike next week. A hawkish policy stance is expected from the Bank of England despite the recession in the United Kingdom. GBP/USD is likely to accelerate its upside journey as the RSI (14) is looking to conquer the bullish range. GBP/JPY snaps two-day uptrend, struggles around 1.5-month-old resistance line, 200-SMA and weekly horizontal hurdle. Sluggish MACD signals, one-week-old support line restrict seller’s entry. Bulls need to cross 167.50 to aim for double tops around 169.00. NZD/USD gains traction for the fourth straight day on Friday amid the prevalent USD selling bias. Bets for less aggressive Fed rate hikes keep the US bond yields depressed and weigh on the buck. A positive risk tone further undermines the safe-haven buck and benefits the risk-sensitive Kiwi. USD/CHF holds lower ground in the weekly low, down for the fourth consecutive day. Mixed sentiment, downbeat US Treasury yields weigh on US Dollar. Early signals for next week’s US inflation, monetary policy meetings of Fed, SNB will be in focus. AUD/USD is aiming to surpass 0.6800 as the market sentiment has become extremely bullish. China’s factory-gate price deflation has cemented a dovish commentary from the PBOC. A decline in the US PPI data is going to delight the Fed as expectations for a drop in inflation will get strengthened. USD/INR takes offers to refresh intraday low as riskier assets cheer US dollar weakness. Recovery in Crude Oil fails to challenge Indian Rupee buyers amid cautious optimism at home and abroad. US consumer sentiment, inflation expectations should be watched for fresh impulse. Silver price remains firmer inside the four-day-old bullish channel. 200-HMA, weekly horizontal support zone challenge bears from retaking control. RSI conditions suggest further pullback but channel formation tests sellers. Silver price (XAG/USD) pares intraday gains around the weekly top, also the highest level in seven months, as bulls take a breather during early Friday morning in Europe. 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.

2022-12-08 09:30

Market Update - 08 December 2022 USD/JPY oscillates in a narrow trading band amid subdued trading action on Thursday. A combination of factors undermines the JPY and extends some support to the major. Bets for less aggressive Fed rate hikes keep the USD bulls on the defensive and cap gains. (FXStreet) GBP/USD lacks any firm direction and oscillates in a narrow trading range on Thursday. Subdued USD demand lends some support, though recession fears seem to cap the pair. Traders also seem reluctant ahead of the crucial FOMC/BoE policy meetings next week. (FXStreet) EUR/USD is oscillating around 1.0500 as investors await a speech from European Central Bank’s Lagarde. Uncertainty over the Federal Reserve policy outlook has muddled investors’ sentiment. The speech from Christine Lagarde will trim obscurity over interest rate policy. EUR/USD is expected to continue its sideways auction profile amid a quiet market mood. (FXStreet) USD/CAD braces for the biggest weekly gains in ten as it grinds near one-month high. Fears of recession, US-China tussles join chatters surrounding Russia to weigh on sentiment. Rebound in US Treasury yields favors US Dollar bulls despite pre-Fed inaction. Second-tier data/events could offer intermediate moves ahead of important Friday. (FXStreet) The US Dollar is struggling to cross the immediate hurdle of 105.20 as the risk-on impulse has capped the upside. US Treasury yields dived, and S&P500 remained choppy amid escalating recession fears. A policy change by the FOMC from 2023 will result in a prolonged decline in the US Dollar. The US Dollar Index (DXY) is facing barricades while attempting to cross the immediate hurdle of 105.20 in the Asian session. (FXStreet) AUD/USD remains confined in a range and is influenced by a combination of diverging forces. The subdued USD demand offers some support, though recession fears seem to cap the Aussie. Traders also prefer to wait on the sidelines ahead of the key FOMC policy meeting next week. (FXStreet) NZD/USD retreats towards 50-HMA, snaps two-day winning streak. Bearish MACD signals, weekly resistance line keep sellers hopeful Convergence of 200-HMA, ascending trend line from late November challenge further downside. Bulls need validation from 0.6470-75 to refresh yearly top. (FXStreet) USD/CHF prints mild gains while defending the bounce off weekly support line. 200-HMA probes the run-up targeting 13-day-old resistance line. MACD, RSI suggests extension of recent moves towards the north. (FXStreet) USD/INR picks up bids to reverse the previous day’s pullback from monthly high. Seven-week-old descending trend line, bearish MACD signals tease sellers. Sustained trading beyond 200-SMA keeps buyers hopeful of witnessing fresh record top. (FXStreet) WTI prints mild gains at the lowest levels in 2022, snaps four-day downtrend. Russian President Vladimir Putin’s comments, China’s easing of zero-Covid policy favor bulls. Fears of economic recession, price cap on oil exports from Moscow probe oil buyers. US inventory build, rebound in Treasury yields also challenge energy bulls amid mixed clues. (FXStreet) Gold price picks up bids to pare the first daily loss in three. Risk-positive headlines from China, Hong Kong appear to favor the latest XAU/USD rebound. Gold bears remain hopeful as firmer US Dollar, Treasury bond yields keep recession fears on the table. Headlines surrounding Russia also probe bullion buyers ahead of next week’s key Fed meeting. (FXStreet) Silver price is juggling around $22.60 amid a quiet market mood. The US Dollar Index (DXY) is struggling to cross the critical hurdle of 105.40. The 200-EM is aiming higher which indicates that the upside trend is intact. (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.

2022-12-07 09:45

Market Update - 07 December 2022 The index extends the advance and flirts with 106.00. The absence of traction prevails in the US yield curve. Weekly Mortgage Applications, Consumer Credit Change next on tap. The USD Index (DXY), which gauges the greenback vs. a bundle of its main rival currencies, climbs further and approaches the 106.00 neighbourhood on Wednesday. (FXStreet) EUR/GBP holds steady near the weekly high, though lacks follow-through buying. The better-than-expected German data underpins the Euro and extends support. The mixed setup warrants some caution before placing aggressive bullish bets. (FXStreet) USD/CAD holds steady near a one-month top and draws support from a combination of factors. Bearish oil prices continue to undermine the Loonie and act as a tailwind amid a stronger USD. Bulls, however, seem reluctant and prefer to wait for the BoC decision before placing fresh bets. (FXStreet) GBP/USD stays pressured around the short-term key support confluence. Convergence of 200-DMA, one-month-old ascending trend line restricts immediate downside. The looming bear cross on MACD keeps sellers hopeful, previous resistance line from June acts as additional downside filter. (FXStreet) EUR/USD is eyeing a cushion around 1.0460 as the US Dollar is displaying topsy-turvy moves. Fresh strength in the United States economy has triggered Federal Reserve’s interest rate peak chaos. European Central Bank policymakers are expecting the interest rate to peak sooner. EUR/USD is declining towards the upward-sloping trendline plotted from November low around 0.9730. (FXStreet) GBP/JPY picks up bids to reverse the previous day’s pullback from one-week high. Bullish MACD signals, sustained bounce off 21-SMA favor buyers. 200-SMA, five-week-old descending trend line challenge upside moves. (FXStreet) AUD/USD touches a fresh weekly low amid some follow-through buying around the USD. Expectations that the Fed may lift interest rates more than projected underpins the buck. Softer Australian GDP print and Chinese trade balance data contribute to the downfall. (FXStreet) NZD/USD remains sidelined as sellers attack short-term key support line. Bearish MACD signals, RSI divergence keeps sellers hopeful. 21-SMA guards immediate recovery, 0.6470-75 region is the key hurdle to the north. (FXStreet) USD/INR eases from one-month high on the Reserve Bank of India (RBI) rate hike. RBI announces 0.35% increase to benchmark Repo rate, as expected. Sluggish US Dollar, cautious optimism surrounding China and sticky Oil price also favor Indian Rupee. (FXStreet) South African GDP overshoots estimates despite political turmoil USD/ZAR Slides to support as Dollar weakness limits gains Fundamental data remains key for the EM (emerging market) currency pair as FOMC looms (DailyFX) Natural gas prices dropped for the fifth session in a row on Tuesday. The daily decline this time was on the back of rising open interest, which is supportive of extra retracement in the very near term. That said, the October low at $4.75 per MMBtu still emerges as the next target for bears for the time being. (FXStreet) Crude oil prices remained under pressure and dropped to fresh 2022 lows on Tuesday. The daily downtick was on the back of diminishing open interest, indicative that further decline could take a breather in the very near term. The broader bearish sentiment in WTI, however, leaves the door open to a probable revisit to the $70.00 mark per barrel. (FXStreet) Gold price oscillates in a range near the weekly low amid some follow-through USD buying. Expectations that the Fed will continue to tighten its policy act as a tailwind for the buck. The easing of COVID-19 curbs in China also contributes to capping the safe-haven XAU/USD. (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.

2022-12-06 09:42

Market Update - 06 December 2022 USD/JPY touches a three-day high on Tuesday, albeit lacks follow-through or bullish conviction. Bets for further policy tightening by the Fed underpin the USD and lends support to the pair. BoJ Governor Kuroda's comments on exiting the ultra-loose monetary policy cap the upside. (FXStreet) EUR/USD struggles to capitalize on its intraday uptick amid some buying around the USD. The better-than-expected German Factory Orders data also does little to provide impetus. The fundamental backdrop supports prospects for some meaningful corrective pullback. (FXStreet) USD/CAD struggles for a firm intraday direction and remains confined in a range on Tuesday. A modest uptick in crude oil prices underpins the Loonie and acts as a headwind for the pair. The downside remains cushioned amid the emergence of some buying around the US Dollar. (FXStreet) GBP/JPY picks up bids to challenge six-week-old resistance. Cautious optimism underpins recovery moves amid sluggish session. BOE hawks, indecision surrounding BOJ’s next move favor pair buyers. (FXStreet) GBP/USD has surrendered the psychological support of 1.220 amid negative market sentiment. The US Dollar is aiming higher as investors are expected that Fed’s interest rate will peak around 5.50-5.75%. Upbeat UK consumer spending is going to create more troubles for the BOPE ahead. (FXStreet) NZD/USD fails to preserve its modest intraday gains amid some follow-through USD buying. Bets that the Fed will continue to raise interest rates offer some support to the greenback. The optimism over the easing of restrictions in China limits losses for the risk-sensitive Kiwi. (FXStreet) USD/INR picks up bids to refresh multi-day top during three-day uptrend. Strong US data, fears surrounding RBI’s rate hike favor buyers. Sluggish oil prices, pre-Fed blackout test upside momentum. (FXStreet) AUD/JPY jumped 30+ pips as RBA announced a 0.25% rate hike and expected further lifts in the key rate. Cautious optimism in the market also underpins the bullish bias. Chatters surrounding the BOJ’s monetary policy tightening challenge upside moves. (FXStreet) AUD/USD snaps two-day downtrend on 0.25% rate hike from Reserve Bank of Australia, signals of further rate hikes. Firmer data from United States contrast with inflation expectations and probe US Dollar bulls. Hoes of China repealing its Zero-Covid policy also favor Australian Dollar bulls amid the sluggish session. Confirmation of rising wedge bearish technical pattern challenge AUD/USD upside. (FXStreet) Gold price bounces off one-month-old support line to pare the biggest daily loss in 10 weeks. US inflation expectations challenge hawkish hopes from Federal Reserve. Optimism surrounding China adds strength to XAU/USD recovery. (FXStreet) Silver pares intraday gains after reversing from seven-month high. 50-HMA breakdown keeps sellers hopeful but sluggish MACD immediate support line restricts downside moves. 200-HMA, nearly descending trend line act as additional trading filters. (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.

2022-12-05 09:49

Market Update - 05 December 2022 The index attempts a mild rebound in the mid-104.00s. The dollar drops to new 6-month lows near 104.00 earlier on Monday. ISM Non-Manufacturing, Factory Orders next of note in the US docket. The greenback, when tracked by the USD Index (DXY), appears to regain some poise early in the European morning around the 104.50 region on Monday. (FXStreet) GBP/USD retreats from a multi-month top amid a modest intraday USD recovery. An uptick in the US bond yields and a softer risk tone underpin the safe-haven buck. A bleak outlook for the UK economy further contributes to capping gains for the pair. (FXStreet) USD/JPY lacks any firm directional bias and oscillates in a narrow range on Monday. The underlying bearish sentiment around the USD continues to act as a headwind. An uptick in the US bond yields, the easing of COVID-19 curbs in China offer support. (FXStreet) USD/CAD is at a make or a break near the round-levels support of 1.3400. Upbeat US Nonfarm Payrolls have failed to provide a cushion to the US Dollar. The Bank of Canada is set to hike its interest rates by 50 bps consecutively for the second time. USD/CAD is expected to deliver more losses on a breakdown of the Ascending Triangle pattern. (FXStreet) EUR/USD scales higher for the fourth successive day and climbs to a fresh multi-month high. Bets for smaller Fed rate hikes continue to weigh heavily on the USD and remain supportive. Hopes for easing COVID-19 curbs in China further seem to undermine the safe-haven buck. Traders now look to the final Services PMI from the Eurozone and the US For a fresh impetus. (FXStreet) AUD/USD has been accelerated above 0.6850 amid a cheerful market mood. A third consecutive 75 bps rate hike is expected from the RBA. Fed’s Evans sees a higher interest rate pace but has favored a deceleration in the interest rate hike pace. (FXStreet) GBP/USD has refreshed its five-month high above 1.2340 and is expected to extend its rally amid a risk-on profile. After upbeat US NFP data, a better-than-projected US ISM Services PMI release may trigger a negative market impulse. Accelerated UK food inflation is impacting sentiment of households ahead of Christmas season. (FXStreet) NZD/USD has been inching higher on the charts into daily resistance. China data capped the advance in NZD/USD on the release. Bears are lurking and eye a correction, but focus is on the greenback. (FXStreet) Gold price corrects from a five-month high amid modest intraday US Dollar recovery move. Rebounding US Treasury bond yields revives the USD demand and weighs on the XAU/USD. Bets for less aggressive rate hikes by Federal Reserve should help limit losses for Gold price. (FXStreet) Silver surrenders its intraday gains to the highest level since late April touched earlier this Monday. The technical setup still favours bullish traders and supports prospects for further appreciating move. A convincing breakdown below the 200-day SMA is needed to negate the near-term positive outlook. (FXStreet) Brent crude oil has already seen some significant price action this Monday after OPEC+ met and concluded that production will remain at prior output levels. The decision came in the midst of other fundamental factors including China’s easing of COVID restrictions as well as the EU’s price cap on Russian oil. G7 nations settled on a $60 per barrel figure on seaborne Russian oil and countries who wish to purchase above this threshold can do so without the Western services such as insurance and transport. Russia in turn stated that they would not be accepting of the price cap which could bring into question future supply that may boost the price of crude oil worldwide. (DailyFX) Prices of natural gas dropped further on Friday amidst increasing open interest and volume, which is supportive of the continuation of the decline in the very near term. Against that, a potential test of the October low at $4.75 per MMBtu seems to have started to emerge on the horizon. (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.

2022-12-02 09:31

Market Update - 02 December 2022 The index drops to 6-month lows near 104.50 on Thursday. Further losses remain likely after a breakdown of the 200-day SMA. US Nonfarm Payrolls are expected at 200K in November. The USD Index (DXY), which tracks the greenback vs. a bundle of its main competitors, remains well on the defensive and revisits multi-month lows around 104.50 at the end of the week. (FXStreet) USD/JPY drops to a fresh multi-month low on Friday amid sustained USD selling bias. The Fed’s dovish pivot and sliding US bond yields continue to weigh on the greenback. Technical selling below the 135.00 mark also contributes to the downward trajectory. Oversold conditions on short-term charts could help limit losses ahead of the US NFP. (FXStreet) EUR/GBP gains some positive traction on Friday, though lacks follow-through buying. Bets for another supersized 75 bps ECB rate hike underpin the Euro and offers support. The GBP consolidates its recent gains and does little to provide any meaningful impetus. (FXStreet) USD/CAD remains indecisive after two-day downtrend, defends weekly gains. Federal Reserve policymakers’ dovish bias, softer United States data weigh US Dollar. Chatters surrounding China, Oil price cap on Russian exports test WTI bulls. Downbeat expectations from Canada, United States employment report tease Canadian Dollar buyers. (FXStreet) GBP/USD remains sidelined after rising to the highest level in five months. Overbought RSI, two-month-old resistance line challenge further upside. Bear need validation from the convergence of 200-DMA, previous resistance line from late June. (FXStreet) EUR/USD portrays typical pre-NFP trading lull at five-month high. ECB President Christine Lagarde cites economic uncertainty, need for fiscal policy to defend the bloc. Downbeat comments from IMF’s Georgieva, anxiety ahead of US NFP also probe bulls.Hopes of Fed’s slower rate hike, downbeat expectations from US data favor buyers. (FXStreet) AUD/USD gains some positive traction for the fourth straight day amid sustained USD selling. The Fed’s dovish pivot continues to drag the US bond yields lower and weigh on the greenback. A softer risk tone seems to act as a headwind for the risk-sensitive Aussie ahead of the NFP report. (FXStreet) USD/INR bears take a breather around two-week low. Sustained trading below 50-DMA, bearish oscillators favor sellers. Four-month-old support line, 100-DMA to challenge bears, descending trend line from late October adds to the upside filters. (FXStreet) NZD/USD gains traction for the fourth successive day amid the prevalent USD selling bias. The Fed’s dovish pivot keeps the US bond yields depressed and weighs on the greenback. The cautious market mood could cap the risk-sensitive Kiwi ahead of the US NFP report. (FXStreet) USD/CHF snaps two-day downtrend as buyers prepare for US jobs report. Cautious mood, rebound in yields allow bears to take a breather amid sluggish session. US NFP could recall pair bears on downbeat forecasts, dovish Fed outlook. (FXStreet) Prices for the natural gas extended the leg lower on Thursday on the back of increasing open interest, which leaves the door open to the continuation of the ongoing retracement in the very near term. Against that, the commodity should meet contention around the November lows in the $5.50/60 region per MMBtu. (FXStreet) WTI prices rose for the third straight session on Thursday amidst shrinking open interest. Against that, the recent rebound in crude oil prices could lose strength and spark a corrective drop in the very near term. So far, the $84.00 mark per barrel appears as the immediate hurdle for bulls. (FXStreet) Thursday’s strong bounce in gold prices finally surpassed the key $1,800 mark per ounce troy. The move, in addition, was on the back of rising open interest and volume, which is indicative that further gains remain in store in the very near term. That said, the next target of note comes at the August high at $1,807 (August 10). (FXStreet) Silver price remains on pressured around intraday low after reversing from multi-day high. Overbought RSI triggered pullback but bears need validation from three-week-old horizontal support. XAG/USD bulls will wait for clear break of two-month-old resistance line for re-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.